Hong Kong Market ends softer

11 Jan 2022 , 05:43 PM

Hong Kong share market finished session lower on Tuesday, 11 January 2022, snapping three days of winning streak on following decline of financial market globally today, amid worries that the normalization of U.S. monetary policy might be brought forward to fight inflation and concerns about the economic impact of the Omicron variant of the coronavirus.

At closing bell, the benchmark Hang Seng Index fell marginal 0.03%, or 7.48 points, to 23,739.06. The Hang Seng China Enterprises Index rose 0.04%, or 3.64 points, to 8,369.01.

Expectations of higher U.S. rates continue to rise alongside rising U.S. inflation, with some of Wall Streets biggest banks now flagging four possible hikes this year. In contrast, Chinese policymakers increasingly focused on stabilising a slowing economy even before recent outbreaks of the novel coronavirus that causes COVID-19, are widely expected to maintain a loosening bias.

Hong Kong is battling with a Covid-19 outbreak of late involving the more transmissive variant, with 24 cases confirmed Monday, five of them local. In mainland China, an outbreak in Xian has necessitated weeks of lockdown while new cases emerged in southern Guangdong province.The northern Chinese city of Tianjin reported 40 new confirmed coronavirus cases on Tuesday, as it battles an outbreak of the highly infectious Omicron variant of the virus.

Shares of tech companies declined on profit booking after recent surge as well as UBS warning of triple risks to corporate earnings in the form of weak consumer spending, slowing economic growth and tough regulatory pressures in 2022. Alibaba Group Holding fell 1.6%, while Xiaomi lost 1.9% and NetEase slipped 0.4%.

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