HK stocks post biggest monthly drop since Oct as trade war escalates

Wharf Real Estate Investment

31/05/2019 09:44

May 31 (Reuters) - Hong Kong stocks ended at a four-month
low on Friday, capping their worst month since October 2018, as
a collapse in trade talks between Beijing and Washington dented
investor confidence and triggered economic slowdown fears. 
 
** The Hang Seng index  .HSI  ended down 0.8% at 26,901.09
points, piercing through the 27,000-point level seen by some as
providing technical support. The China Enterprises Index  .HSCE 
lost 0.6% to 10,387.17 points.
 
** For the month, Hang Seng tumbled 9.4% and HSCE slumped 10%. 
    
** Trade tensions between Beijing and Washington rapidly
worsened this month, after U.S. President Donald Trump accused
China of reneging on earlier promises in trade talks, and
slapped fresh tariffs on $200 billion of Chinese goods,
triggering retaliation from China. 
  
** China President Xi Jinping and his U.S. counterpart are
likely to find it "difficult" to make major progress towards
ending their countries' trade war when they meet at a G20 summit
in Japan in June, Dai Xianglong, a former Chinese central bank
chief said on Friday.  urn:newsml:reuters.com:*:nL4N2370RV
   
** The collapse in trade talks strengthened concerns of a
slowdown in China's economy. An official survey released on
Friday showed that China's factory activity in May slumped into
a deeper contraction than markets had expected.  urn:newsml:reuters.com:*:nL4N2361WF
 
** The sub-index of the Hang Seng tracking energy shares
 .HSCIE  dropped 2.7%, while the IT sector  .HSCIIT  rose 0.32%,
the financial sector  .HSNF  ended 0.69% lower and the property
sector closed 2.02% weaker.
 
** The top gainer on the Hang Seng was Sands China Ltd
 1928.HK , which gained 1.87%, while the biggest loser was Wharf
Real Estate Investment Company Ltd  1997.HK , which dropped
4.55%.
 
** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 0.21%, while Japan's Nikkei index
 .N225  closed down 1.63%.
 
** The yuan  CNY=CFXS  was quoted at 6.902 per U.S. dollar at
0829 GMT, 0.01% weaker than the previous close of 6.9013. 
 
** The top gainers among H-shares were Huaneng Power
International Inc  0902.HK  up 2.7%, followed by China Railway
Group Ltd  0390.HK , gaining 2.09% and China Gas Holdings Ltd
 0384.HK , up by 2.02%.
 
** The three biggest H-shares percentage decliners were China
Mobile Ltd  0941.HK , which ended down 2.28%, China Huarong
Asset Management Co Ltd  2799.HK , which closed 2.2% weaker and
CNOOC Ltd  0883.HK , down by 2.1%.

 (Reporting by the Shanghai Newsroom, Editing by Sherry
Jacob-Phillips)
 ((samuel.shen@thomsonreuters.com;  +86 21 20830018; Reuters
Messaging: samuel.shen.thomsonreuters.com@reuters.net))