Hong Kong stocks halt seven-day rot as rebound Meituan, CNOOC help narrow market losses

·3-min read

Hong Kong stocks gained as traders looked to overnight gains in US equities for inspiration and arrest a seven-day slump. Meituan and oil explorers advanced, helping the market to trim losses during the week.

The Hang Seng Index rose 0.4 per cent to 28,842.13 to end the week on a 0.3 per cent setback. The gauge has lost about 2.5 per cent in its longest losing streak since late 2015. The Shanghai Composite fell 0.6 per cent, and the CSI 300 dropped 0.9 per cent, both recording their second week of pullback.

Meituan advanced 3.1 per cent to HK$307.20, the most since June 1. The operator of China’s largest on-demand delivery and local services platform plans to hire 60,000 employees in 2021, almost doubling its headcount. The stock has the largest weighting in the benchmark at 8 per cent.

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Solar panel glass manufacturer Xinyi Solar rose 6.8 per cent to HK$15.06, reaching its highest level since March 3.

Chinese oil giants rose as a report from OPEC on Thursday predicted oil demand to grow by about 5 million barrels a day in the second half of 2021, compared to the first half. PetroChina, Sinopec and CNOOC rose by 1.3 per cent to 3.8 per cent.

Stocks on Wall Street rose overnight as investors dismissed a surge in US inflation as temporary. The S&P 500 climbed 0.5 per cent to a record high, while the Nasdaq Composite gained 0.8 per cent. Consumer prices jumped 5 per cent in May from a year earlier, the most in nearly 13 years.

“The market’s reaction shows that US inflation is still not sufficient to break away from the transitory factors narrative,” said Anderson Alves, global macro analyst at ActivTrades, in a report. Traders will be watching whether these factors become persistent, he added.

Higher inflation in the US is transitory and not yet a longer-term concern, said David Chao, Invesco’s global market strategist for Asia-Pacific in a note. “Equities should continue doing well in a rising inflation environment.”

Markets in the Asia-Pacific region were mixed. Japan’s Nikkei 225 was little changed, while South Korea’s Kospi rose 0.8 per cent. Australia’s S&P/ASX 200 appreciated 0.1 per cent.

Two companies debuted on the mainland. In Shanghai, battery product manufacturer Guangdong Greenway Technology rose 228 per cent to 85.10 yuan from its listing price of 25.91 yuan. In Shenzhen, Zhejiang Hongchang Electrical Technology gained 93 per cent to 72.67 yuan from its debut price of 37.60 yuan.

This article Hong Kong stocks halt seven-day rot as rebound Meituan, CNOOC help narrow market losses first appeared on South China Morning Post

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