Hong Kong Market falls 0.7%

Hong Kong share market were lower on last trading session of the month, Tuesday, 30 April 2019, after weaker than expected China's official and Caixin manufacturing PMIs rekindled concerns about the health of the world second largest economy. Meanwhile, selloff pressure mounted on caution before trade negotiations between the U.S. and China and the US Federal Reserve's two-day policy meeting starting later in the day for clues on the interest rate outlook. Around late afternoon, the Hang Seng Index fell 0.7%, or 203.18 points, to 29,689.63. The Hang Seng China Enterprises Index lost 0.8%, or 93.49 points, to 11,544.69.

Factory activity in China expanded for a second straight month in April but at a much slower pace than expected, an official survey showed on Tuesday, suggesting the economy is still struggling for traction despite a flurry of support measures. Reading on the official Purchasing Managers' Index (PMI) for manufacturing unexpectedly fell to 50.1 in April from March's reading of 50.5 stoking concerns about the economic state of China and pressuring Asian equities lower. Data from a private business survey, the Caixin/Markit factory PMI, fell to 50.2 in April lower than the March reading of 50.8. A reading above 50 indicates expansion, while a reading below that signals contraction.

Meanwhile, trade negotiations between the U.S. and China are set to resume in Beijing later in the day. Trade talks between the world's dominant economies are in the decisive phase that will determine whether a final agreement is possible, US Treasury Secretary Steven Mnuchin said Monday of negotiations with China. Mnuchin and US Trade Representative Robert Lighthizer travel to Beijing this week for another round of talks with Chinese negotiators starting Tuesday, and they will meet next week in Washington to try to finalize a deal that President Donald Trump has demanded to repair what he calls and unfair and unbalanced relationship. Trump imposed steep punitive tariffs on more than $250 billion in imports from China, and Beijing has retaliated with duties on $110 billion in US goods. US businesses nationwide report that the tariffs are raising costs on key inputs for production, and the uncertainty is causing them to delay investments and hiring.

Investors now await a raft of economic data from the euro zone and will also focus on the commencement of the Federal Open Market Committee (FOMC) meeting that will determine the future trajectory of interest rates in the United States. The US central bank is widely expected to hold interest rates steady as policymakers balance recent stronger-than-expected U.S. economic growth against sluggish inflation.

Blue chips were mixed. HSBC (00005) edged up 0.1% to HK$67.5. HKEX (00388) fell 1.2% to HK$270.6. Tencent (00700) dipped 0.7% to HK$388. China Mobile (00941) inched up 0.1% to HK$75.2. AIA (01299) softened 0.5% to HK$79.9.

Shares of energy companies were mostly weaker as oil prices week-long rally halted after US president Donald Trump urged the OPEC to boost its output to offset the export gap from Iran on the US sanction. CNOOC (00883) shed 2.5% to HK$14.32. PetroChina (00857) declined by 1.6% to HK$4.98. But Sinopec (00386) gained 0.5% to HK$6.03 even though its 1Q net declined by 20%to RMB15.47 billion.

Shares of Macau gaming counters were lower ahead of the regulator's monthly gross gaming revenue data release. Wynn Macau (01128) slipped 3.3% to HK$22.35. Galaxy Entertainment (00027) dipped 2.7% to HK$58.95. Sands China (01928) descended 1.9% to HK$43.1. SJM Holdings (00880) was unchanged at HK$9.53. MGM China (02282) sank 3.1% to HK$16.16. Melco International Development (00200) dropped 1.4% to HK$19.2.

Shares of Standard Chartered (2888 HK) jumped more than 4 per cent, as the emerging markets lender reported that its profit rose in the first quarter and that it would buy back US$1 billion worth of shares.

Gold-Finance Holdings (1462 HK) slumped 67 per cent to 15.7 Hong Kong cents on Tuesday before trading was halted. In its latest statement, Gold-Finance said Wei and director Xu Liyun could not be contacted since the weekend and their absence would have a negative impact on the company's daily operations.

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