logo
HK stocks end down on weight of US fiscal fears

HK stocks end down on weight of US fiscal fears

RTHK22-05-2025

HK stocks end down on weight of US fiscal fears
The Hang Seng index ended the day down 283.47 points, or 1.19 per cent, at 23,544.31. File photo: RTHK
Stocks in Hong Kong and mainland China ended lower on Thursday, with gains in banks and miners across the border outpaced by rising investor concerns over the fiscal health of the world's largest economy.
The benchmark Hang Seng index ended the day down 283.47 points, or 1.19 per cent, at 23,544.31.
The Hang Seng China Enterprises index fell 1.19 per cent to 8,557.64.
Investors turned risk averse after sharp declines on Wall Street and a spike in longer-dated US Treasury yields, while US President Donald Trump tried to push his sweeping spending and tax-cut bill through Congress.
Across the border, the benchmark Shanghai Composite index was down 0.22 per cent at 3,380.19, while the blue-chip CSI300 index was down 0.06 per cent at 3,913.87.
Banks outperformed the market, with the sub-index rising 1 per cent.
China's recent decision to lower key rates, including deposit interest rates at major state-owned lenders, was expected to guide smaller lenders with similar moves to alleviate their shrinking interest margin pressure.
Meanwhile, mining-related shares climbed, as investors rushed to safe-haven assets, such as gold, following mounting concerns over the US government's growing debt. Western Region Gold rose 2.39 per cent at the midday break.
Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.75 per cent, while Japan's Nikkei index closed down 0.84 per cent.
Wendy Liu, chief China equity strategist at JP Morgan, said she's optimistic about A-shares, despite expecting their peers in Hong Kong to outperform due to higher valuations.
Liu expects the CSI300 index to climb to 4,150 points, or nearly 6 per cent higher than the current level, in the base-case scenario, while hitting 4,420 points as a more positive outcome and 3,800 points in a more bearish case. (Reuters)

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trump says China, US agree to ‘done deal', Beijing's C919 ambitions: SCMP daily highlights
Trump says China, US agree to ‘done deal', Beijing's C919 ambitions: SCMP daily highlights

South China Morning Post

time9 hours ago

  • South China Morning Post

Trump says China, US agree to ‘done deal', Beijing's C919 ambitions: SCMP daily highlights

Catch up on some of SCMP's biggest China stories of the day. If you would like to see more of our reporting, please consider subscribing China and the US have agreed to 'a done deal' that includes rare earth exports from China and Chinese students attending colleges in the US, President Donald Trump said on Wednesday, pointing to a potential breakthrough aimed at cooling trade tensions that had been reignited by mutual accusations of deal violations. China will push for civil aviation to be a topic of discussion at a summit with European Union leaders in July, with particular focus on the certification of the domestically produced C919 aircraft, according to a source with knowledge of the matter.

China-US agree to ‘done deal', Trump says, pending sign-off by President Xi
China-US agree to ‘done deal', Trump says, pending sign-off by President Xi

South China Morning Post

time10 hours ago

  • South China Morning Post

China-US agree to ‘done deal', Trump says, pending sign-off by President Xi

China and the US have agreed to 'a done deal' including tariff cuts, rare earth exports from China, as well as Chinese students going to colleges in the US, President Donald Trump said on Wednesday, pointing to a potential breakthrough aimed at cooling trade tensions that had been reignited by mutual accusations of deal violations. Advertisement 'Our deal with China is done, subject to final approval with President Xi and me,' Trump posted on his social media platform Truth Social, as the negotiating teams from the two countries concluded talks in London from the past two days. 'Full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!). 'We are getting a total of 55 per cent tariffs, China is getting 10 per cent. Relationship is excellent! Thank you for your attention to this matter!' Trump's latest post followed a rocky stretch in bilateral ties, marked by a fraying trust between the world's two largest economies. But a phone call between President Xi Jinping and US President Donald Trump last week helped fuel a sense of cautious optimism ahead of the London talks. Advertisement

Musk regrets Trump criticisms, says some posts ‘went too far'
Musk regrets Trump criticisms, says some posts ‘went too far'

South China Morning Post

time12 hours ago

  • South China Morning Post

Musk regrets Trump criticisms, says some posts ‘went too far'

Elon Musk , the world's richest person and Donald Trump 's former adviser, said on Wednesday that he regretted some of his recent criticisms of the US president after the pair's public falling-out last week. 'I regret some of my posts about President @realDonaldTrump last week. They went too far,' Musk wrote on his social media platform X Musk's expression of regret came just days after Trump threatened the tech billionaire with 'serious consequences' if he sought to punish Republicans who voted for a controversial spending bill. Their blistering break-up – largely carried out on social media before a riveted public since Thursday last week – was ignited by Musk's harsh criticism of Trump's so-called 'big, beautiful' spending bill, which is currently before Congress. Some lawmakers who were against the bill had called on Musk – one of the Republican Party's biggest financial backers in last year's presidential election – to fund primary challenges against Republicans who voted for the legislation. 'He'll have to pay very serious consequences if he does that,' Trump, who also branded Musk 'disrespectful,' told NBC News on Saturday, without specifying what those consequences would be.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store