Hang Seng Falls 102 Points to 25,834; Resources Slip, Pharma Gains, Alibaba Cloud Cuts Delivery to 100 Days
Hong Kong's Hang Seng Index opened higher but reversed to close down 102 points, or 0.4%, at 25,834. The index briefly rose above 26,000 before losing momentum. Resource stocks led declines, with CMOC down 3.6% and Zijin Mining down 3.2%. Pharmaceutical stocks outperformed, with Hansoh Pharma up 5% and WuXi Biologics up 2.9%. Alibaba rose 1.2% after its cloud unit cut data center delivery to 100 days. The HSCEI fell 0.36% and the Hang Seng Tech Index dropped 0.68%.
Asia-Pacific markets were mixed this morning, with A-shares weak and Hong Kong stocks volatile. After the Hang Seng Index reclaimed the 250-day and 10-day moving averages yesterday, it rose more than 100 points this morning, briefly crossing the 26,000 level before reversing lower to trade around 25,800. The index opened 61 points higher at 25,998, and its gain extended to as much as 122 points to a high of 26,060, but lacked support at the highs and turned downward. As of 10:40 am, the Hang Seng stood at 25,834, down 102 points or 0.4%. The HSCEI fell 31 points or 0.36% to 8,590, and the Hang Seng Tech Index dropped 33 points or 0.68% to 4,885.
Resource stocks were soft, with CMOC down 3.6% at HK$18.21 and Zijin Mining down 3.2% at HK$6.415, the two worst-performing blue chips. Internet and tech stocks were mixed: Alibaba rose 1.2% to HK$128.2 after its Alibaba Cloud unit shortened the data center delivery cycle to 100 days; Tencent fell 1.5% to HK$474.2; Meituan gained 1% to HK$94.85; Xiaomi dropped 1.7% to HK$27.16; JD. com lost 2.6% to HK$127; and Baidu declined 1.8% to HK$105.4. Pharmaceutical stocks outperformed, with Hansoh Pharma up 5% at HK$36.26 and WuXi Biologics up 2.9% at HK$47.48, the two best-performing blue chips. HSBC slipped 0.2% to HK$162.1, and HKEX fell 1.4% to HK$411.