Hong Kong Market rises on upbeat U.S., China data

The Hong Kong stock market finished session marginally higher on Tuesday, 30 June 2020, snapping a three-session losing streak, as stronger-than-expected U.S. and Chinese economic data overshadowed Chinese legislature's shock announcement of its national security law for Hong Kong and concerns over the health of the global economy.

At closing bell, the benchmark Hang Seng Index declined 1.01%, or 248.71 points, to 24,301.28. The Hang Seng China Enterprises Index dropped 0.97%, or 95.49 points, to 9,757.69. For the month, Hang Seng Index gained 6.4%, while Hang Seng China Enterprises Index rose 2.1%. Hong Kong stock market will be closed on Wednesday for the Establishment Day holiday that recognises the British handover of Hong Kong to China on July 1, 1997.

The US Pending Home Sales Index, an advance look at home sales based on signed purchase and sale agreements, fell 5.1% in May compared to the same month last year, according to data from the National Association of Realtors (NAR). When compared to April of 2020, the news was much better. Pending sales increased by 44.3% last month after two consecutive months of decline, NAR reported.

China manufacturing sector continued to expand in June, and at a slightly faster rate, the latest survey from the National Bureau of Statistics showed on Tuesday with a manufacturing PMI score of 50.9, up from 50.6 in May. It also moves further above the boom-or-bust line of 50 that separates expansion from contraction. The bureau also noted that its non-manufacturing index came in with a score of 54.4, up from 53.6 in the previous month.

But the market saw its topside capped as investors refrained from active buying amid concerns about a deeper-than-feared recession and the number of confirmed COVID-19 cases surpassing 10 million worldwide.

China's parliament passed national security legislation for Hong Kong on Tuesday, a day after Washington moved to suspend Hong Kong's preferential treatment under the U.S. law. Pro-democracy activists and some western governments expects the law will erode Hong Kong's high degree of freedom.

Hong Kong Exchanges and Clearing, the city's stock exchange operator, gained 3% Tuesday, as investors continued to pile in as US-listed Chinese companies seek secondary listings in the city.

Powered by Capital Market - Live News