China stocks flat as defensive plays offset tech weakness
HONG KONG: China stocks were largely unchanged on Tuesday, as gains in defensive sectors helped offset weakness in technology shares amid a lack of catalysts. At the midday break, the Shanghai Composite index was up 0.03% at 3,987.56 points. China’s blue-chip CSI300 index was down 0.06%. Tech shares weighed on the market, with the start-up board ChiNext Composite Index falling 0.9% and Shanghai’s…
China stocks remained largely flat on Tuesday as technological setbacks were counterbalanced by defensive sector gains. The Shanghai Composite index closed 0.03% higher at 3,987.56 points, while the CSI300 index slipped 0.06%. Technology shares, however, dragged the market down, with the ChiNext Composite Index falling 0.9% and the STAR50 Index dropping 1.5%.
The CSI Semiconductor Index also declined by 2%. Defensive sectors managed to offset the tech weakness, with the CSI Liquor Index up 2.7% and the consumer staples sector increasing 1.6%. Banking stocks saw a rise as well, with the CSI Banks Index up 1.1%. Analysts at Hwabao Securities predicted cautious sentiment and range-bound trading.
The market is currently in an earnings lull, awaiting confirmation on the Chinese and US leaders' meeting schedule and responding to Federal Reserve Chair Kevin Warsh's hawkish stance. In Hong Kong, the Hang Seng Index fell 1% to 25,310.88, and the Hang Seng Tech Index declined 0.8%. Online fast-fashion retailer Shein saw its shares drop 8% following its debut, as investors expressed concerns over the delayed listing and its competitive edge.
Across the region, stock markets faced pressure due to rising global bond yields and increased Middle East tensions, which pushed oil prices above $90 a barrel.
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Also reported by 1 other outlet
- China’s stocks flat as defensive gains offset tech weakness freemalaysiatoday.com
