China stocks end lower, recovery doubt sinks Hang Seng to 11-week low (updated)

Byd Electronic (International)

10/03/2023 09:32

(Added stocks, indexes closing levels and weekly performances)
    By Georgina Lee
       HONG KONG, March 10 (Reuters) - China and Hong Kong
stocks extended losses on Friday, led by automobile stocks and
select internet stocks in Hong Kong, as investors' concern about
China's recovery resurfaced after weaker-than-expected data this
week. 
    ** Traders also fretted about the U.S. non-farm payrolls
report due on Friday, which could spur more aggressive interest
rate hikes from the Federal Reserve.
    ** China's blue-chip CSI300 Index  .CSI300  dropped 1.31%,
closing at a nine-week low. The Shanghai Composite Index  .SSEC 
lost 1.4% on Friday, and for the week it shed 2.95% — the worst
weekly loss in over two months. 
    ** Hong Kong's benchmark Hang Seng  .HSI  was down 3.04%,
ending Friday at a 11-week low. The blue chip index dropped 6%
and endured the biggest weekly loss in over four months. 
    ** Hang Seng China Enterprise Index  .HSCE  slid 3.06%.
    ** Asian markets also fell on Friday by bank stocks. MSCI's
broadest index of Asia-Pacific shares outside Japan
 .MIAPJ0000PUS  dropped to a two-month low.
    ** "This week's economic indicators, for example, the
worse-than-expected 10.2% drop in January and February import
data, has revived investors' concerns about the pace of economic
recovery in China and weighed on sentiments in Hong Kong," said
Linus Yip, chief strategist at First Shanghai Securities.
    ** On Thursday, China reported consumer price index (CPI)
for February 1.0% higher than a year earlier, rising at the
slowest pace since February 2022 and indicating cautious
consumption sentiment. 
    ** Automobile stocks in both China and Hong Kong led key
indexes lower on weak sales momentum for new cars.
    ** CSI all-share automobiles index  .CSI931008  plunged
4.85%, while the Hang Seng Tech Index  .HSTECH  sank 3.78%,
weighed by automobile stocks such as BYD Electronic
International  0285.HK , which dropped 5.69%.
    ** Hong Kong shares of Chinese e-commerce giant JD.com
 9618.HK  tumbled 11.49% leading the decliners in the Hang Seng
Index after its 7.1% revenue growth for the fourth-quarter 2022
missed estimates. 
    ** Shares of Asia-focussed insurer AIA Group Ltd  1299.HK 
fell as much as 4.62% after reporting that its value of new
business (VONB), which measures expected profits from new
premiums and is a key gauge for future growth, slid 8% to $3.09
billion last year.

 (Reporting by Georgina Lee; Editing by Janane Venkatraman and
Uttaresh Venkateshwaran)
 ((georgina.lee@thomsonreuters.com; 852-3462 7713))