Jan 13, 202512:13GMT+7
(Reuters) - China and Hong Kong stocks fell on Monday, weighed down by the rising odds of fewer U.S. interest rate cuts and the widening U.S.-China yield gap.
** At the midday break, the Shanghai Composite indexwas down 0.45% at 3,154.37 points.
** China's blue-chip CSI300 indexwas down 0.47%, with the financial sector sub-indexlower by 0.8%.
** The consumer staples sectorwas up 0.11%, the real estate indexhas gained 0.86% and the healthcare sub-indexrose 0.23%.
** The Hang Seng Indexslid 1.35% to 18,807.68, set for a six-day losing streak. The Hang Seng China Enterprises Index
HSCEIfell 1.14%.** Tech giantsdropped 1.38%, leading the decline.
** The sell-off followed strong U.S. jobs data on Friday that dealt a blow to hopes for more rate cuts and triggered a broad correction on Wall Street.
** China's 10-year bond yield has tumbled over 100 basis points in a year to be around 1.6%, with the spread to U.S. Treasury yields the widest in 24 years.
** This increasing gap, driven by the drop in Chinese yields, has visibly increased market pressure, CICC analysts said in a note.
** They expect trading to be range-bound in the short term due to caution over Hong Kong stocks.
** On the macro data front, China's exports gathered pace in December, while imports recovered, closing out the year on a positive note as the world's second-largest economy braces for mounting trade risks with the incoming U.S. administration.
** "The market pullback may have more to go heading into the U.S. Presidential inauguration on Jan. 20, with the dollar's strength and a 'high for longer' outlook," JPMorgan analysts, led by Wendy Liu, said in a note.
** The smaller Shenzhen indexwas down 0.25%, the start-up board ChiNext Composite indexwas higher by 0.12% and Shanghai's tech-focused 50 index was down 0.87%.
** Around the region, MSCI 's Asia ex-Japan stock index was weaker by 1.47% while Japan's Nikkei indexwas down 1.05%.
Sumber : Reuters