Hong Kong stocks snap 2-day decline as China deflationary pressure wanes



Hong Kong stocks rebounded on Friday after falling for two days as official data showed easing deflationary pressure in China.

The Hang Seng Index rose 0.4 per cent to 26,258.21 as of 10.06am local time. The Hang Seng Tech Index gained 0.7 per cent. On the mainland, the CSI 300 Index climbed 0.3 per cent and the Shanghai Composite Index added 0.6 per cent.

Alibaba Group Holding rallied 4.1 per cent to HK$148.40 and peer JD.com surged 3.7 per cent to HK$115.90. Gold producer Zijin Mining Group advanced 2.2 per cent to HK$38.08 on expectations of rising demand for the precious metal on the back of rising geopolitical tensions.

Producer prices dropped 1.9 per cent from a year ago in December, the National Bureau of Statistics said on Friday. That compared with an estimate for a 2 per cent decline in a Bloomberg survey. Consumer prices rose 0.8 per cent, the fastest pace since February 2023.

For the week, the Hang Seng Index has dropped 0.2 per cent, giving back some of the gains made so far this year, as investors await catalysts after geopolitical risks flared up following the US military raid on Venezuela and China’s export curbs on Japan.

Other major Asia-Pacific markets were mixed. Japan’s Nikkei 225 climbed 0.7 per cent and Australia’s S&P/ASX 200 added 0.3 per cent, while South Korea’s Kospi retreated 0.2 per cent.

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