SHANGHAI: Hong Kong stocks rebounded on Friday after three sessions of losses but remained on track for their biggest weekly loss since April, as Sino-US trade talks and Middle East tensions weighed on investor sentiment. Mainland China shares edged higher.
-
China’s blue-chip CSI300 Index climbed 0.2% by the lunch break while the Shanghai Composite Index gained 0.1%. Hong Kong benchmark Hang Seng was up 1.2%.
-
China kept its benchmark lending rates unchanged, after rolling out sweeping monetary easing measures last month to support the economy.
-
Amid uncertainties related to China-US trade friction, onshore share valuations may be range-bound at low levels near term, said UBS strategist Lei Meng in a note.
-
“We expect limited downside, and potential upside catalysts mainly from stronger policy easing, the continual entry of medium or long-term funds and structural reforms,” Meng said.
-
The CSI Liquor Index rose 2.6%, leading gains onshore.
-
Shares of “Blind Box” toymaker Pop Mart dropped more than 5% after state media outlet People’s Daily called for stricter regulation of the blind box industry, citing expert views. The stock has fallen 13% so far this week, but soared 162% this year.
-
Israel and Iran’s air war entered a second week and fears of a potential US attack on Iran hung over markets in Asia, impacting overall risk sentiment.
-
The Hang Seng Index was down 1.6% this week, on track for the largest decline since April 7, if losses hold. The CSI300 Index was down 0.3%.
-
Meanwhile, the Hong Kong dollar weakened to 7.85 per dollar for the first time in more than two years. The Hong Kong dollar is pegged in a tight band between 7.75 and 7.85 to the US dollar.
American Dollar Exchange Rate