The Hang Seng Index eased 0.9 per cent to 23,620.64 as of 11.03am local time. The Hang Seng Tech Index declined 1.1 per cent. On the mainland, the CSI 300 Index slipped 0.2 per cent and the Shanghai Composite Index lost 0.3 per cent.
“The market is likely to trade sideways, and fundamentally speaking it’s not supportive for a new bout of bull run,” said Lin Yang, an analyst at Dongxing Securities in Shanghai. “The fundamentals, such as economic strength and earnings, are still cloudy and the concerns in the market are still there.”
Hong Kong stocks’ rebound from tariff-inflicted sell-offs may face some challenge, as investors shift their focus to economic strength and corporate earnings. China’s key sets of economic data were mixed in April, with retail sales stagnating and industrial production picking up, while the declines in housing prices continued. Alibaba, the biggest weighting on the Hang Seng Index, posted quarterly revenue and profits that both fell short of projections last week.
Other major Asia-Pacific markets fell following a lukewarm auction of 20-year US Treasuries that investors fear would further balloon US’ government debt. Japan’s Nikkei 225 slipped 0.9 per cent, while South Korea’s Kospi retreated 1.2 per cent and Australia’s S&P/ASX 200 lost 0.5 per cent.
