Hong Kong Stocks Swing From Gain, Loss After Two-Day Rise

Hong Kong stocks swung between gains and losses after capping their biggest two-day gain in almost three months. Energy companies declined.

The Hang Seng Index slid 0.2 percent to 22,243.13 as of 9:34 a.m. in Hong Kong after gaining as much 0.1 percent. The gauge rose 3.3 percent the past two trading days. The Hang Seng China Enterprises Index (HSCEI) of mainland companies, also known as the H-share index, dropped 0.8 percent to 9,912.85.

The Hang Seng Index dropped to 9.8 times reported earnings at the end of last week, the widest discount versus the MSCI World Index since May 2003, data compiled by Bloomberg show. The gauge has fallen 4.4 percent this year through yesterday, the second-worst performer among 24 developed markets tracked by Bloomberg.

Hong Kong’s benchmark index entered a so-called correction last week, sliding at least 10 percent from its recent peak in December, as China’s official manufacturing index for January signaled a slowdown in the world’s second-largest economy. The H-share gauge is down 7.6 percent this year through yesterday.

The Hang Seng Indexes Co., compiler of the city’s stock market benchmark, yesterday announced its quarterly review. Milk producer China Mengniu Dairy Co. will be added to the Hang Seng Index (HSI) effective March 10, while China Coal Energy Co. (1898) will be removed. BYD Co. will replace Zoomlion Heavy Industry Science & Technology Co. in the H-share gauge.

China may release January data on new yuan loans and money supply as early as today, while reports on producer and consumer prices are due tomorrow.

Futures on the Standard & Poor’s 500 Index lost 0.2 percent today. The gauge slid less than 0.1 percent yesterday, after the biggest four-day jump in a year, as declines in companies from Procter & Gamble Co. to Amazon.com Inc. overshadowed optimism about economic growth.

U.S. retail sales stagnated in January after a 0.2 percent gain the prior month, according to the median estimate of economists in a separate survey by Bloomberg News before the U.S. Commerce Department reports the data later today.

To contact the reporter on this story: Kana Nishizawa in Hong Kong at knishizawa5@bloomberg.net

To contact the editor responsible for this story: Sarah McDonald at smcdonald23@bloomberg.net

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