Hong Kong stocks fell, with the benchmark index snapping its longest win streak in six months, as data from China and U.S. signaled slowing growth in the world’s two largest economies.
Cnooc Ltd., China’s biggest offshore oil producer, slumped 2.2 percent and United Co. Rusal, the world’s largest aluminum producer, slid 2.8 percent after metal prices dropped yesterday. China Merchants Holdings International Co., which operates ports in China and abroad, retreated 2.4 percent. Galaxy Entertainment Group Ltd., a casino operator founded by billionaire Lui Che-Woo, retreated 3.9 percent after Macau casino revenue last month was slightly less than estimates.
The Hang Seng Index fell 0.3 percent to 22,668.30 at the close, with almost stocks dropping for every one that rose. The index capped its first decline since April 23, with trading volume 15 percent less than the 30-day intraday average. The Hang Seng China Enterprises Index of mainland companies traded in the city decreased 0.9 percent to 10,825.35 as the nation’s markets reopened after a three-day holiday. Hong Kong’s market was also shut yesterday.
“The global economy, including the U.S. and mainland China, is still growing but they’re not sustainable,” said Linus Yip, chief strategist at First Shanghai Securities in Hong Kong. “If the market goes down too much, people will expect more policies to come out from China and the U.S.”
The Hang Seng Index lost 4.6 percent from a Jan. 30 high through April 30 as data from China signaled a slowdown in the world’s second-largest economy, making the benchmark index the second-worst performer among developed markets this year. The measure traded at 10.9 times estimated earnings on April 30, compared with a five-year average of 12.7 and the Standard & Poor’s 500 Index’s multiple of 14.4, according to data compiled by Bloomberg.
Energy and materials companies led declines in the Hang Seng Composite Index. Cnooc slid 2.2 percent to HK$14.16, while PetroChina Co., the country’s biggest energy producer, fell 2.1 percent to HK$9.66. Rusal lost 2.8 percent to HK$3.76 and Aluminum Corp. of China Ltd., the nation’s No. 1 supplier of the light metal by market value, slumped 2.4 percent to HK$2.86.
West Texas Intermediate oil for June delivery fell 2.6 percent in New York yesterday. The London Metal Exchange Index of industrial metals slid 3.2 percent, the most since December 2011. The index entered a bear market on April 23.
Futures on the Standard & Poor’s 500 Index climbed 0.3 percent today. The index yesterday slipped 0.9 percent, retreating from a record high, on slower growth in American payrolls and manufacturing as the Federal Reserve said it will maintain its bond buying to support the economy.
Li & Fung Ltd., a supplier to Wal-Mart Stores Inc., decreased 1.4 percent to HK$9.90. China Merchants Holdings dropped 2.4 percent to HK$23.95, while Yanzhou Coal Mining Co., China’s third-largest producer of the fuel by market value, lost 3.3 percent to HK$7.81.
A private gauge of Chinese manufacturing fell last month. The final April reading of 50.4 for a Purchasing Managers’ Index released today by HSBC Holdings Plc and Markit Economics compares with 51.6 for March and the preliminary reading of 50.5 given April 23. A reading above 50 indicates expansion.
China’s official Purchasing Managers’ Index dropped to 50.6, the National Bureau of Statistics and China Federation of Logistics and Purchasing said yesterday, falling short of a 50.7 median forecast of 31 analysts in a Bloomberg News survey.
Lenovo Group Ltd., the world’s No. 2 personal computer maker, slumped 2.7 percent to HK$6.90. The company’s negotiations to buy parts of International Business Machines Corp.’s server division broke down after the two sides couldn’t agree on a price, according to a person familiar with the discussions.
Galaxy declined 3.9 percent to HK$33.40, and SJM Holdings Ltd., a casino operator founded by tycoon Stanley Ho, dropped 3.2 percent to HK$18.94 after Macau’s Gaming Inspection & Coordination Bureau said casino revenue in the city was 28.3 billion patacas ($3.54 billion) in April, trailing the 28.5 billion patacas estimated by analysts.
While energy producers fell, airlines that may benefit from lower fuel costs gained. China Southern Airlines Co., the country’s biggest domestic carrier, increased 2.5 percent to HK$4.18 and China Eastern Airlines Corp. advanced 2.3 percent to HK$3.18. Air China Ltd., the nation’s No. 1 carrier by market value, added 1.9 percent to HK$6.40.
Hang Seng Index futures were little changed at 22,594. The HSI Volatility Index rose 2 percent to 15.73, indicating traders expect a swing of 4.5 percent for the equity benchmark in the next 30 days.