Hong Kong Stock Losses Melt Away Despite Weak Data

MarketWatch Pulse

Hong Kong stocks crawled back from early losses Tuesday morning despite data showing China's producer prices falling sharply and consumer-price inflation at its lowest in five years. Helping the market were reports that the People's Bank of China had pumped 80 billion yuan ($13 billion) into the financial system via reverse repurchase agreements. The Hang Seng Index was flat after opening 0.2% lower. Many of the top-weighted stocks advanced, with China Mobile Ltd. and Tencent Holdings Ltd. up 0.7% and 0.3%, respectively. However, HSBC Holdings PLC declined 1.7%, extending losses after a report over the weekend on alleged tax evasion and money laundering at its Swiss unit. Meanwhile, mainland Chinese banks traded mixed, as Agricultural Bank of China Ltd. dropped 0.3%, both Industrial & Commercial Bank of China Ltd. and China Construction Bank Corp. slipped 0.2%, while Bank of Communications Co. advanced 0.8%, Bank of China Ltd. rose 0.5%, and China Minsheng Banking Corp. added 0.6%. Among other movers, Hong Kong developer New World Development Co. tumbled 3.4%, after issuing a profit warning for the second half of last year. However, snack-food maker Want Want China Holdings Ltd. recovered 1.8% after previous heavy losses. Over on the Chinese mainland, the Shanghai Composite Index also turned higher after brief opening declines, rising 0.7%.

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