Hong Kong equities finish their second consecutive week in the red.
Hong Kong stocks complete 2nd weekly loss on fund outflows as mixed recovery signals, risk of US tech curbs sap demand.
The Hang Seng Index logged a second weekly loss, as mixed recovery signals in China clouded earnings outlook
The US is said to be mulling new rules to prevent US investment in Chinese tech companies, The New York Times reported, days after the ‘spy balloon’ incident
Hong Kong stocks retreated for a second straight week as investors sold amid mixed signs of recovery in China while rising geopolitical tensions stoked concerns about new tech sanctions on Chinese companies.
The Hang Seng Index fell 2 percent to 21,190.41 at the close of Friday trading, bringing the drop this week to 2.2 percent. The Tech Index sank 4.6 percent, while the Shanghai Composite Index weakened 0.2 percent.
Alibaba Group slipped 3.3 percent to HK$104.10, Baidu slumped 7.4 percent to HK$140.40 while JD.com tumbled 6.3 percent to HK$210.40. BYD lost 3.5 percent to HK$240.60 as Warren Buffett’s Berkshire Hathaway further cut its stake. China’s biggest chip maker SMIC slipped 4.3 percent to HK$17.24 on an earnings setback.
t was a mixed morning session, with the Hang Seng Index and ASX 200 seeing red. Inflation figures from China raised the threat of another spike in consumer prices, which could force central banks to take more aggressive measures to bring inflation to target.
China’s annual inflation rate accelerated from 1.8% to 2.1% in January. However, the producer price index was down 0.8% year-over-year versus a 0.7% fall in December. The pickup in the inflation rate was a red flag for central bankers.
From overnight, a bearish US session spilled over to the Asian morning session, with Fed fear lingering following hawkish Fed chatter from mid-week.
HANG SENG TECHNICAL ANALYSIS
DAILY CHART:
Hang Seng is currently trading in up channel.
Hang Seng is currently trading below 5&20 SMA
RSI is in buying zone which suggests bullishness and Stochastic suggesting a downtrend.
Hang Seng’s immediate resistance is at 21746 & its immediate support level is 21078
HOW TO TRADE HANG SENG IN THIS WEEK
Hang Seng is trading in an up channel, but it has reversed to the downside currently it is at its important support if the support level is broken then we can see a downside.
