Hong Kong stocks fell, with the city’s benchmark index heading for its third weekly decline in four, as consumer shares slid. Great Wall Motor Co. plunged after resuming trading.
The Hang Seng Index (HSI) lost 0.3 percent to 21,766.41 as of 9:33 a.m., heading for 2.4 percent decline this week. The Hang Seng China Enterprises Index (HSCEI), also known as the H-share index, retreated 0.6 percent to 9,672.57. Data showed mainland consumer prices rose less than estimated.
The Hang Seng Index fell 6.3 percent this year through yesterday while the H-share gauge sank 10 percent amid concern China won’t meet its 7.5 percent growth target. The government is confident of achieving the goal, Premier Li Keqiang said yesterday at the World Economic Forum on Africa in Nigeria. The Hang Seng Index traded at 10.1 times estimated earnings yesterday, compared with 15.9 for the Standard & Poor’s 500 Index yesterday.
China’s consumer prices rose 1.8 percent in April from a year earlier, according to a government report today. Economists surveyed by Bloomberg had expected a 2.1 percent rate after a 2.4 percent rise in March. Producer prices fell more than estimated. Data this week showed services-industry growth slowed in April, while exports unexpectedly increased.
Futures on the S&P 500 lost 0.1 percent today after the the U.S. equity benchmark index slid 0.1 percent yesterday. The Nasdaq Composite Index dropped 0.4 percent, with Amazon.com Inc. and E*Trade Financial Corp. pacing declines as the Internet selloff continued.
The slump in technology shares this week has been led by Twitter Inc., which is poised for an 18 percent slump. An exchange-traded fund of social-media companies fell eight of the past 12 days amid concern that user growth is slowing and valuations have become excessive.
To contact the reporter on this story: Jonathan Burgos in Singapore at firstname.lastname@example.org
To contact the editors responsible for this story: Sarah McDonald at email@example.com Jim Powell