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15 Mar Hong Kong stocks slide for third day as China holds key policy rate, odds on US rate cut weaken amid strong inflation reports
The Hang Seng Index slumped 1.3 per cent to 16,743.37 at 9.59am local time, restraining the weekly advance to 2.4 per cent. The Tech Index slipped 2 per cent while the Shanghai Composite Index retreated 0.2 per cent.
Chinese property developers paced losses as Longfor Group tumbled 3.7 per cent to HK$10.52 and China Resources Land lost 2.4 per cent to HK$24.85. Alibaba Group fell 2.5 per cent to HK$71.60 and Baidu declined 2.7 per cent to HK$100.90.
The People’s Bank of China on Friday kept the rate on one-year medium-term lending facility at 2.5 per cent, dashing hopes for additional monetary easing after a major liquidity injection and rate cut earlier this year to revive growth.
Country Garden to raise funds for US$13 million bond coupon within grace period
Country Garden to raise funds for US$13 million bond coupon within grace period
Elsewhere, China is due to release several reports on the economy’s performance in January-February. Also, some 30 Hang Seng Index members are expected to release their report cards in the coming weeks.
Stocks also fell in the region after US producer prices rose 1.6 per cent last month from a year earlier, outpacing economists’ forecasts for a 1.2 per cent increase. With almost no chance of a Federal Reserve rate cut at this month’s meeting, investors have also turned less bullish as the odds weakened for a cut in May, according to data compiled by CME Group.
Most major Asian markets fell. Japan’s Nikkei 225 slipped 0.5 per cent, while South Korea’s Kospi retreated 1 per cent and Australia’s S&P/ASX 200 lost 1.3 per cent.