HK stocks rebound from four-month low on strong US job report as Alibaba drags Big Tech index to November low

15-May-2021 Intellasia | South China Morning Post | 5:02 AM Print This Post

Hong Kong stocks rebounded from a four-month low after a report showing strengthening US labour market helped calm a volatile trading week. Alibaba Group Holding slipped after posting its first quarterly loss since 2012.

The Hang Seng Index added 0.3 per cent to 28,798.59 on early Friday trading, paring losses for the week. Insurer AIA Group led gainers with a 2 per cent rally while Alibaba dragged the tech barometer to the lowest level since November. The Shanghai Composite Index rose 0.2 per cent.

Traders were firmly focused on smaller jobless claims in the US, as a sustained recovery in the job market soothed concerns over inflation and rising bond yields. The report also helped major Asian stock indexes post strong gains, mirroring the overnight rally in US equities.

The MSCI Asia Pacific Index, the broadest gauge of stocks in the region, had earlier erased all of this year’s advance on Thursday, according to Bloomberg data. The slide erased $2.5 trillion of value from its February 17 peak.

Alibaba tumbled 5.4 per cent in Hong Kong following a fourth-quarter loss of 7.65 billion yuan (US$1.2 billion), which took into account a $2.8 billion fine by China’s antitrust regulator. Citigroup and China International Capital Corp cut their stock price targets, citing uncertainty over its plan to reinvest profits.

The slump reflects continuing overhang on Chinese technology stocks traded in the city, as the Hang Seng Tech Index slumped for a third week in row. The 5.8 per cent loss so far this week is the worst since a 15.2 per cent crash in the final week of February.


Category: Hong Kong

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