SHANGHAI: Mainland China and Hong Kong stocks fell on Friday, dragged lower by shares of liquor makers and other consumption-related shares and as sentiment was dented by a weaker yuan and fears of more Western trading restrictions on Chinese firms.
Market participants anxiously awaited May credit lending data due later in the session and the central bank’s rollover of maturing medium-term policy loans next Monday for more clues on the broader economy.
China will also release May activity data on Monday.
Hong Kong stocks open higher
China’s yuan eased to a fresh seven-month low against a firmer US dollar on Friday, as the Japanese yen fell broadly after the Bank of Japan (BOJ) stood pat on rates and said it would trim bond buying in the future.
Separately, sentiment was hurt as the United States was considering taking additional steps against Chinese companies that have been supplying Russia’s defense industrial sector, the State Department said on Thursday.
At the midday break, the Shanghai Composite index was down 0.37% at 3,017.67 points.
China’s blue-chip CSI300 index was down 0.4%, with its consumer staples sector down 1.44%.
Liquor shares also dragged markets on Friday, with a sub-index tracking the industry losing 1.3% in morning deals. The index is set to post seventh consecutive session of losses to the lowest level since Nov 2022.
Chinese H-shares listed in Hong Kong fell 0.52% to 6,388.47, while the Hang Seng Index was down 0.67% at 17,991.04.
The smaller Shenzhen index was down 0.34%, the start-up board ChiNext Composite index was weaker by 0.74% and Shanghai’s tech-focused STAR50 index was down 1.04%.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.20% while Japan’s Nikkei index was up 0.44%.
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