China, Hong Kong shares are lower after data points to weak domestic demand

Stocks in China and Hong Kong fell on Tuesday as investor sentiment took a hit after trade data pointed to weak domestic demand.

The CSI300 index, which brings together the largest companies listed in Shanghai and Shenzhen, fell 0.86%, while the Shanghai index fell 1%. Hong Kong’s Hang Seng Index fell 2.12%, posting its worst daily performance in nearly two months.

China’s imports contracted sharply in April, while exports rose at a slower pace, reinforcing signs of sluggish domestic demand despite the end of Covid-related restrictions and adding pressure to an economy already struggling due to the slowdown in global growth.

UBS analysts wrote in a note that import data fell more than expected, indicating that domestic demand remains weak despite supportive policies.

Financials, which had led gains in the morning and in recent days, lost momentum in late trading. Ping An Insurance Group Co of China Ltd fell 2.6%.

. In TOKYO, the Nikkei index advanced 1.01%, to 29,242 points.

. In HONG KONG, the HANG SENG index fell by 2.12% to 19,867 points.

. In SHANGHAI, the SSEC index lost 1.10% to 3,357 points.

. The CSI300 index, which brings together the largest companies listed in SHANGHAI and SHENZHEN, fell by 0.86% to 4,027 points.

. In SEOUL, the KOSPI index lost 0.13% to 2,510 points.

. In TAIWAN, the TAIEX index rose 0.18% to 15,727 points.

. In SINGAPORE, the STRAITS TIMES index lost 0.45% to 3,242 points.

. In SYDNEY, the S&P/ASX 200 index fell 0.17% to 7,264 points.

Source: Terra

Rose

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