Hong Kong stocks fall as the Fed hopes to have a region

HONG KONG (Nikkei Markets) – Hong Kong shares sold on Thursday, the continent's stock losses and caution about an upcoming meeting between US and Chinese presidents slowing the market, despite significant gains elsewhere in the region.

The Hang Seng index closed the day down 0.9% to 26,451.03, after reaching 26,923.33. HSBC Holdings lender, headquartered in London, sold 1.5%, Industrial and Commercial Bank of China, 1.3%, while leading Internet service provider Tencent Holdings sold 0.9% . China Construction Bank erased its initial gains to fall by 0.8%.

Local stocks have neglected a strong rebound on Wall Street after US Federal Reserve Chairman Jerome Powell said key rates were "just below" neutral, fueling speculation that the central bank might not raise interest rates as much as expected. The dollar index fell 0.6% overnight, while the top three performance indicators for US equities rose 2.3% or more. We are still waiting for the Fed to deliver the fourth rate hike this year next month.

The Nikkei Asia300 index of regional companies outside Japan rose 0.3%.

Hong Kong shares "rallied yesterday, before Powell's speech," said Kevin Leung, director of global investment strategy at Haitong International Securities in Hong Kong, adding that expectations of a slowdown in the rate hike was already announced. taking short-term profits, but said that December will be "probably more optimistic".

On the continent, the Shanghai Composite Index reversed its initial gains to finish down 1.3%. The land-traded yuan rose 0.1% against the dollar to 6.9462. Investors continue to wait for the meeting between US and Chinese presidents at the G-20 summit this weekend.

"There will be no big breakthrough" at the meeting between US President Donald Trump and Chinese Xi Jinping, but other bad news was unlikely, Leung said.

Jewelry retailer Luk Fook Holdings International fell 6.6% to HK $ 23.45, despite a 28.5% increase in net profit for the six months ended September 30 and a 25% increase in revenues . Nomura reduced the title to "neutral" from "purchase" and reduced its price target from HK $ 36.20 to HK $ 26.40, citing lower than expected gross profit margins and a "significant" decline in growth sales by store since October. The jewelry group Chow Tai Fook lost 6.9% more than its half-year results.

Fashion retailer Global Brands Group fell 17.2% after reporting a loss of $ 284 million between April and September compared to a profit last year. Its revenues decreased by 4.1% to $ 699 million.

The technology product manufacturer China Goldjoy Group added 2.7% after stating that one unit had agreed to buy an additional 28.2% stake in the listed information technology company. in Hong Kong, New Sports Group, for HK $ 411.9 million ($ 52.7 million), or HK $ 0.36 per share. participation at 29.2%. New Sports Group shares rose 71.9%.

CSI Properties gained 1.6%. The half-year net profit rose 64.5%, the business figure of the period having more than doubled.

AV Concept Holdings increased by 9.1%. The semiconductor distributor posted a 7.2% drop in net profit on September 30, but its revenue rose 15.6% from a year ago.

Most advertising services provider Kwai Chung added 2.1% after reporting more than doubling its net profit for the period from April to September.

– Amy Lam