Hong Kong shares opened lower on Wednesday, with the benchmark Hang Seng slipping 2.5%, taking cues from the S&P 500 which fell deeper into the bear territory after hitting a near two-year low. The Chinese yuan hit its lowest level since 2008 and was trading at 7.2296 against the dollar on Wednesday.
|Alibaba Group Holding Ltd. BABA||-2.05%|
|JD.com Inc JD||-5.45%|
|Baidu Inc BIDU||-2.87%|
|Tencent Holdings Ltd. TCEHY||-1.42%|
|Nio Inc NIO||-6.81%|
|XPeng Inc XPEV||-7.58%|
|Li Auto Inc LI||-5.7%|
EV-maker stocks sank in Hong Kong trading, with shares of Xpeng, Nio and Li Auto shares falling over 5%. Shares of JD.com plunged 5%, while Alibaba lost over 2%.
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Macro News: China’s industrial profits dropped 2.1% in the first eight months of 2022 compared to a year earlier, after a 1.1% drop logged in January-July, reported Reuters citing data from the National Bureau of Statistics (NBS).
Chinese monetary authorities have asked local banks to revive a yuan fixing tool that was abandoned two years ago as they look to defend the rapidly weakening currency, reported Reuters.
Company News: Tencent’s online literature arm stated it would pull the plug on its e-reader service, reported the South China Morning Post.
William Li, founder-CEO of Chinese EV maker Nio, has warned that Europe’s energy crisis is slowing its expansion in a region where it is aiming to take on dominant players, reported FT.
Top Gainers and Losers: Country Garden Services Holdings Company Limited and JD.com, Inc. are the top losers among Hang Seng constituents, having lost over 6% and 5% respectively. There were no gainers on Wednesday.
Global News: U.S. futures traded in the red on Wednesday morning Asia session. The Dow Jones futures were down 0.37% while the Nasdaq futures lost 0.6%. The S&P 500 futures were down 0.46%.
Elsewhere in Asia, Australia’s ASX 200 was down 0.7%. Japan’s Nikkei 225 was down 2.31% while China’s Shanghai Composite index lost 0.73%. South Korea’s Kospi was down 2.41%.
Image and article originally from www.benzinga.com. Read the original article here.