Hong Kong stocks on course for first weekly loss in a month on China growth, earnings jitters

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Hong Kong stocks on course for first weekly loss in a month on China growth, earnings jitters

Concerns about the durability of China’s growth and corporate earnings put Hong Kong stocks on track for their first weekly decline in nearly a month, as investors moved beyond their optimism about the outcomes of tariff talks.

The Hang Seng Index rose 0.2 per cent to 24,811.51 as of 10.15am local time on Friday. But the gauge was down 2.3 per cent for the week, its first such loss since July 4. The Hang Seng Tech Index gained 0.6 per cent. On the mainland, the CSI 300 Index climbed 0.1 per cent and the Shanghai Composite Index was little changed.

China Petroleum and Chemical Corp, the nation’s largest oil refiner that is also known as Sinopec, slumped nearly 3 per cent to HK$4.47 after saying it expected a first-half profit decline of 40 to 44 per cent. Peer PetroChina fell 2.4 per cent to HK$7.49. Macau casino operator Sands China slipped 0.1 per cent to HK$19.02 ahead of its earnings report later Friday.

The stellar run that drove the Hang Seng Index to its highest point in three and a half years last month showed signs of fatigue on sluggish China economic data. An official survey this week showed that the manufacturing industry unexpectedly contracted in July, while heavyweight HSBC Holdings reported a decline in quarterly profit. Investors were struggling with a lack of fresh stimulus measures after a Politburo meeting chaired by President Xi Jinping earlier this week only reiterated policies from earlier conferences.

Other major Asia-Pacific markets were mixed: Japan’s Nikkei 225 slipped 0.4 per cent, South Korea’s Kospi tumbled 2.9 per cent and Australia’s S&P/ASX 200 lost 0.7 per cent.

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