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Hong Kong Stocks Tumble 2%, Dragged by Property and Tech; Asia Markets Mixed

Asia-Pacific markets were mixed as Hong Kong stocks led losses in the region, tumbling by 2% — dragged by real estate and technology stocks.

Mainland Chinese markets were also in negative territory, with the Shanghai Composite down 0.37% to end at 3,197.82 and the Shenzhen Component falling 0.34% to 10,972.96. Both indexes recorded a second straight day of losses.

In Australia, the S&P/ASX 200 was 0.2% down and closed at 7,283.8 for a second straight day of losses, as investors digest minutes from the Reserve Bank of Australia’s July meeting.

The Nikkei 225 climbed 0.32% to end at 32,493.89 and the Topix rose 0.59% to 2,252.28. Japanese investors are bracing for key economic data later this week, including its trade balance and consumer price index figures for June.

South Korea’s Kospi slipped 0.43% to close at 2,607.62, but the Kosdaq finished up 1.76% at 914.14, its highest level in over 15 months.

This comes as the country holds its first Nuclear Consultative Group meeting with the U.S. today, which will “discuss information sharing, consultation mechanism and joint planning and execution designed to bolster nuclear deterrence against North Korea.” Yonhap reported, citing South Korea’s presidential office.

.N225Nikkei 225 Index*NIKKEI32493.89102.630.32
.HSIHang Seng Index*HSI19015.72-398.06-2.05
.AXJOS&P/ASX 200*ASX 2007283.8-14.7-0.2
.KS11KOSPI Index*KOSPI2607.62-11.38-0.43
.FTFCNBCACNBC 100 ASIA IDX*CNBC 1008655.73-62.26-0.71

Overnight in the U.S., all three major indexes climbed as investors braced for the second quarter earnings season.

The Dow Jones Industrial Average added 0.22% to reach its highest closing level in 2023, while the S&P 500 climbed 0.39%, while the Nasdaq Composite saw the largest gain 0.93%.

China vows to ‘restore and expand’ consumption to boost growth

China’s top economic state planner vowed Tuesday to “restore and expand” consumption in a wide-ranging plan to bolster growth that includes boosting household income, improving business environment for private firms and stabilizing youth employment.

China’s continued economic recovery is still faced with insufficient demand, weak momentum, and weak confidence, Jin Xiandong, an official with the National Development and Reform Commission, said Tuesday at the agency’s monthly press conference in Beijing, according to a CNBC translation.

“Consumer purchasing power and expectations are relatively weak, while consumption infrastructure and environment need to be improved,” Jin added.

China’s risk of deflation is ‘serious’ — one economist says it’s ‘time to act’

Fears are growing that China’s economy is tethering on the verge of deflation after another slate of underwhelming economic data provided more evidence of stagnating growth, renewing calls for more meaningful policy intervention.

“We need to see broad and persistent price pressure before we can declare deflation,” said Hong Hao, Grow Investment Group’s chief economist. “This is happening in the upstream sectors and it normally takes two to four quarters to pass down.”

“I think we are on the verge of deflation. Now it’s the time to act to stem the deflationary pressure,” he added.

Adani shares inch up after chairman re-affirmed company disclosure standards

Adani Group’s chairman on Tuesday affirmed the company’s disclosures that no breach was found and that the Hindenburg report carried misinformation.

“The report was a combination of targeted misinformation and discredited allegations, the majority of them dating from 2004 to 2015,” the group’s chairman Gautam Adani said in a shareholder address during the annual general meeting.

He added that an Expert Committee looking into the matter did not find any regulatory failure and confirmed that the Group’s disclosures, finding “no instances of any breach.”

Shares of Adani Enterprise inched up 0.56%, while Adani Transmission rose 1.58%. Adani Green added 1.52%.

China needs to play a bigger role in debt restructuring talks for vulnerable nations, says professor

The West has not done enough to bring China to the negotiating table, said Mauro Guillen, professor at the University of Pennsylvania’s Wharton School.

The U.S. and Europe need to engage with China in debt restructuring talks for vulnerable countries since “China has money” and influence with many of these nations, Guillen told CNBC’s “Squawk Box Asia.”

His comments come on the heels of the Group of 20 finance ministers meeting in Gandhinagar, India.

There has yet to be a breakthrough on how much help will be offered to low income countries in need of debt restructuring.

Guillen highlighted that China’s lack of involvement could be due to its own problems at home. “There’s a lot of pressure on President Xi to organize the stimulus for its own economy,” he said. “China may want to focus on their own problems for the time being rather than solve other people’s problems.”

Property and tech stocks lead losses as Hang Seng tumbles over 2%

Real estate and technology stocks led losses on the Hang Seng index which tumbled more than 2%.

Real estate developer Longfor Group was the biggest loser on the index, its shares sliding more than 9%, while Country Garden Holdings saw a 6.67% fall.

On the tech front, shares of JD Health International fell more than 5% and was the largest loser in the sector, followed by Alibaba Group subsidiary Alibaba Health Information Technology, which dropped 4.2%.

Source : CNBC