NetEase, Baidu, Meituan hurt Hong Kong stocks as focus shifts to Fed chair’s speech

The Hang Seng Index fell 0.2 per cent to 17,612.10 at the close, ending the week with a gain of 1 per cent. The Tech Index retreated 1.1 per cent while the Shanghai Composite Index advanced 0.2 per cent.

The decline in Hong Kong followed the sell-off on Wall Street after top US policymakers cast doubts on the impending rate cut because of the recent mixed economic data. Fed chief Jerome Powell will deliver his remarks at the Jackson Hole symposium at 10am New York time on Friday, where he is likely to indicate his support for cutting interest rates ahead of next month’s rate decision.

Gaming firm NetEase slumped 10.3 per cent to HK$128.30, the biggest loser among the 82 blue-chip index members, after its second-quarter results missed consensus. Shipping giant Orient Overseas International tumbled 7.3 per cent to HK$106.40 after its interim earnings slumped 26 per cent year on year.

Tech stocks were generally weaker, with Chinese internet search giant Baidu shedding 4.9 per cent to HK$82.20 after reporting flat second-quarter revenue. Xiaomi dropped 1.5 per cent to HK$18.82 and food delivery platform Meituan lost 1.4 per cent to HK$107.50.

“In certain industries and individual stocks, the stock price fluctuations will be relatively large if there are unexpected developments in the financial report,” said Jason Chan, senior investment strategist at Bank of East Asia. However, the overall Hong Kong stock index will not see a lot of volatility, but mainly some ups and downs, he added.

The US economy is still relatively stable despite some data hiccups, he said, adding these factors will not necessarily hurt Hong Kong stocks, only short-term small adjustments.

Mainland developer Longfor dropped 0.5 per cent to HK$8.49 after reporting its interim profit crashing 27 per cent year on year on Friday, while Country Garden Services rose 2.7 per cent to HK$4.26 despite its first-half results coming in weaker than the market’s already-low expectations.

Ping An Insurance advanced 3.6 per cent to HK$35.55 after reporting its best half-yearly performance in four years. Apparel maker Shenzhou International jumped 2.2 per cent to HK$66.45.

Elsewhere, Japan’s Nikkei 225 Index rose 0.4 per cent, while South Korea’s Kospi declined 0.2 per cent and Australia’s S&P/ASX 200 was little changed.