China, Hong Kong stocks weaken as auto shares, Apple suppliers weigh
HONG KONG: China and Hong Kong stocks retreated on Monday, with automobile and Apple suppliers leading the decline.
At the midday break, the Shanghai Composite index was down 0.3% at 3,338.42 points. China's blue-chip CSI300 index was down 0.7%.
In Hong Kong, the benchmark Hang Seng Index was down 1% at 23,366.06. The Chinese H-share index listed in Hong Kong, the Hang Seng China Enterprises Index fell 1.3% to 8,474.69.
Apple supplier stocks lost ground after US President Donald Trump threatened tariffs on imported iPhones.
iPhone assembler Luxshare and mobile screen maker Lens Tech both lost 1.3%. Airpod maker Goertek declined 0.7%.
Car-makers also slipped, weighing on both onshore and offshore markets. The CSI All Share Automobiles Index lost 2.8% to near a one-week low, while the Hang Seng Automobile Index in Hong Kong tumbled 4.6%.
'Sentiment has been weakening without significant fresh inflow and specific themes to trade on, analysts at China Securities said in a note.
However, China's yuan has strengthened past the 7.17 level after the central bank tightened the midpoint fixing, and analysts say the strengthening trend of the currency should lend support to the nation's stocks.
'We estimate every 1% of RMB increase versus the USD could boost Chinese equities by 3%,' Goldman Sachs' China equity strategist Kinger Lau wrote in a note.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
13 minutes ago
- Business Recorder
Oil inches up on supply concerns and weaker dollar
SINGAPORE: Oil prices ticked up on Tuesday on concerns about supply, with Iran set to reject a U.S. nuclear deal proposal that would be key to easing sanctions on the major oil producer, while weakness in the dollar also supported prices. Brent crude futures gained 21 cents, or 0.32%, to $64.84 a barrel by 0437 GMT. U.S. West Texas Intermediate crude was up 27 cents, or 0.43%, to $62.79 a barrel, after rising about 1% earlier in the session. The oil market surged higher on Monday as rising geopolitical risks and a supply hike from OPEC+ that fell short of expectations provided a boost, said ING analysts in a note. 'The strength continued into early morning trading today,' ING said on Tuesday. Both contracts gained nearly 3% in the previous session after the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, agreed to keep output increases in July at 411,000 barrels per day, which was less than some in the market had feared and the same hike as the previous two months. Oil leaps 4% after OPEC+ keeps output increase unchanged 'With the worst fears not panning out, investors unwound their bearish positions they had built prior to the weekend's meeting,' ANZ analysts said in a note. Meanwhile, the dollar index, which measures its performance against six other major currencies, held near six-week lows as markets weighed the outlook for President Donald Trump's tariff policy and its potential to hurt growth and stoke inflation. A weaker U.S. currency makes dollar-priced commodities such as oil less expensive for holders of other currencies. 'Crude oil prices continue to rise, supported by the weakening dollar,' said Priyanka Sachdeva, senior market analyst at Phillip Nova. Geopolitical tensions also supported prices. Iran was poised to reject a U.S. proposal to end a decades-old nuclear dispute, an Iranian diplomat said on Monday, saying it fails to address Tehran's interests or soften Washington's stance on uranium enrichment. If nuclear talks between the U.S. and Iran fail, it could mean continued sanctions on Iran, which would limit Iranian supply and be supportive of oil prices. Adding to supply worries, a wildfire in the province of Alberta in Canada has prompted a temporary shutdown of some oil and gas production, which could reduce supply. According to Reuters calculations, wildfires in Canada have affected more than 344,000 bpd of oil sands production, or about 7% of the country's overall crude oil output.
Business Recorder
13 minutes ago
- Business Recorder
Positive momentum at PSX, KSE-100 gains 700 points
A day after shedding over 800 points, bullish momentum returned to the Pakistan Stock Exchange (PSX) with the benchmark KSE-100 Index gaining over 700 points during the opening hours of trading on Tuesday. At 10:40am, the benchmark index was hovering at 119,578.51, an increase of 700.71 points or 0.59%. Buying was observed in key sectors including cement, commercial banks, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks including HUBCO, SNGPL, SSGC, OGDC, PPL, MCB, MEBL and UBL traded in the green. In a key development, Prime Minister Shehbaz Sharif said on Monday that talks with the International Monetary Fund (IMF) over the forthcoming federal budget had been successful, paving the way for a new phase of economic growth. The premier, while talking to a select group of journalists, said the government had stabilised the economy and would now shift its focus toward sustained development. On Monday, PSX witnessed a volatile session on the first trading day of the week, as early bullish momentum was wiped out by heavy late-session selling, finally the benchmark index closed into negative territory. The benchmark KSE-100 index shed 813.29 points or 0.68% to close at 118,878 points. Internationally, Asian shares edged cautiously higher on Tuesday while the dollar fell to a six-week low as erratic US trade policies clouded over markets and investors turned defensive ahead of key developments later in the week. US President Donald Trump and Chinese leader Xi Jinping will likely speak this week, White House press secretary Karoline Leavitt said on Monday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions. The call between the two leaders will be closely watched by markets to see if the tariff-induced blow to global stocks and the dollar this year could get some reprieve or ratchet up, as trade tensions between the world's two largest economies simmer. Data on Monday showed US manufacturing contracted for a third straight month in May and suppliers took the longest time in nearly three years to deliver inputs amid tariffs. The gloomy global trade situation left US futures falling early in the Asian session, failing to sustain the slight gains made during the cash session on Wall Street overnight. Nasdaq futures and S&P 500 futures were both down 0.2% each. In Europe, EUROSTOXX 50 futures advanced 0.28% and FTSE futures added 0.15%. MSCI's broadest index of Asia-Pacific shares outside Japan reversed early losses to last trade 0.6% higher, while Japan's Nikkei rose 0.66%.
Business Recorder
4 hours ago
- Business Recorder
Seafood sector: performance highlighted
LAHORE: Pakistan's seafood sector continues to demonstrate resilience and growth, supported by the country's abundant marine resources and increasing international demand. Nazir Hussain, President Pakistan China Joint Chamber of Commerce and Industry (PCJCCI) emphasized the sector's strong export performance and the growing importance of China as a destination for Pakistani seafood products. According to data released by the Pakistan Bureau of Statistics (PBS), Pakistan's seafood exports from July to May (2020-24) stood at $383.088 million; an increase from $373.382 million recorded during the same period in 2019-23. This reflects a year-on-year growth rate of approximately 2.6 percent, despite global economic challenges and fluctuating trade patterns. He added Pakistan is endowed with immense fishing potential, thanks to our 1,000-kilometer-long coastline, diverse aquatic species, and favourable climatic conditions. China has emerged as a pivotal partner in our seafood trade, accounting for a substantial portion of our exports. Brig. Mansoor Saeed Sheikh (retd), Senior Vice President PCJCCI said that China is one of the world's largest consumers and importers of seafood. According to the International Trade Centre (ITC), Pakistan exported around 29% of its total fish and aquatic products to China in 2019 alone. With increasing urbanization and growing consumer demand for high-protein diets, China's seafood imports have surged, creating significant opportunities for Pakistani exporters. Pakistan's geographical proximity, competitive pricing, and abundant supply position it as a natural trading partner for China's seafood sector. Zafar Iqbal, Vice President PCJCCI further highlighted the need for Pakistan's fisheries industry to move toward value-added processing, such as filleting, vacuum-packing, and quick freezing, to capture higher margins in export markets. By investing in modern processing and cold chain infrastructure, we can significantly enhance export revenues and create employment opportunities. There is also rising interest among Chinese investors to establish seafood processing facilities directly in Pakistan. This would reduce logistics costs and improve supply chain efficiency. He added that there is only one factory that has just started working on nitrogen-based quick-freezing ice. This technology helps in maintaining the quality. The product freezes fast. Salahuddin Hanif, Secretary General PCJCCI said that Pakistan's government has taken several steps to boost the fisheries sector, including the modernization of fishing harbours, training for fishermen, and subsidies for cold storage and transport. Additionally, the Marine Fisheries Department is working closely with exporters to ensure compliance with international quality standards. Our goal is to position Pakistan not just as a supplier of raw seafood, but as a competitive producer of high-quality, value-added marine products for international markets. Copyright Business Recorder, 2025
