Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Benzinga
Benzinga
World
Bhavik Nair

Alibaba, Nio Fall Over 5%: Hang Seng Opens Weaker As Fed Stays Hawkish, China Asserts COVID-Zero Policy

Hong Kong shares opened in the red on Thursday, with the benchmark Hang Seng falling over 0.9% in morning trade, after the Federal Reserve’s anticipation of a higher bar for interest rates to rein in inflation roiled U.S. markets. Shares of Nio fell over 6%, while Alibaba and Baidu shares lost over 4% on Thursday morning.

Hong Kong Stocks Today
Stock Movement
Alibaba Group Holding Ltd. (NYSE:BABA -5.27%
JD.com Inc (NASDAQ:JD) -3.4%
Baidu Inc (NASDAQ:BIDU) -4.63%
Tencent Holdings Ltd. (OTC:TCEHY)           -2.34%
Meituan (OTC:MPNGF) -2.59%
Nio Inc (NYSE:NIO) -6.45%
XPeng Inc (NYSE:XPEV) 0.18%
Li Auto Inc (NASDAQ:LI) 5.52%

“We maintain our fed funds forecast of 5%, which includes a 50bp hike in December and a 25bp rate rise at the February and March meetings next year. Our analysis expects some moderation in core inflation in Q4,” ANZ Research said in a note.

The markets also seem to have taken into account China’s affirmation that a zero-tolerance approach continues to be the overall strategy in tackling COVID-19 after unverified reports had fuelled optimism about the potential easing of the policy.

Also Read: Compare Online Investing Brokers

Macro News: Chinese policymakers vowed that growth was still a priority and they would go ahead with reforms, reported Reuters, in an apparent bid to calm fears that ideology is likely to take precedence following Xi Jinping’s consolidation of power.

The Hong Kong Monetary Authority (HKMA) on Thursday hiked its base rate by 75 basis points to 4.25%, reported Reuters.

China’s top health body has stated the country’s zero-tolerance approach continues to be the overall strategy in tackling COVID-19 after unverified social media posts raised hopes the policy would be eased, reported Bloomberg.

Company News: Tencent Holdings and state-owned China Unicom have received regulatory approval for a joint-venture company, Reuters reported, citing a public document. Unicom Innovation Venture Capital, a subsidiary of China Unicom, will control 48% of the new company, while Shenzhen Tencent Industry Venture Capital, a Tencent unit, will control 42%, the report said.

Zhejiang Geely Holding Group's premium electric car business is looking to sell the first electric vehicle under the Zeekr brand in Europe next year, Reuters reported, citing Zeekr's CEO.

Top Gainers and LosersCSPC Pharmaceutical Group Limited and Alibaba Group Holding Limited are the top losers on Hang Seng, sliding over 8% and 5%, respectively. Country Garden Services Holdings Company Limited and Hang Lung Properties Limited are the top gainers, gaining over 4% each.

Global News: U.S. futures traded in the green on Thursday morning Asia session. The Dow Jones futures were up 0.16% while the Nasdaq futures gained 0.27%. The S&P 500 futures were trading higher by 0.18%.

Elsewhere in Asia Pacific, Australia’s ASX 200 was down 1.91%. Japan’s Nikkei 225 traded 0.06% lower while China’s Shanghai Composite index traded flat. South Korea’s Kospi lost 0.56%.

Read Next: Apple, Amazon, Tesla, Ford, AMD: Hawkish Fed, COVID-19 Woes Spur Retail Interest In These Stocks Today

 

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.