HK stocks down, China's yuan slips as US election counting progresses
Updates prices, adds details throughout
By Summer Zhen and Jiaxing Li
HONG KONG/SHANGHAI, Nov 6 (Reuters) -China's yuan weakened and stock markets on the mainland and Hong Kong fell on Wednesday, as investors leaned toward the return of Donald Trump as president even as preliminary counting in the U.S. election still showed a tight presidential race.
U.S. stock futures EScv1 jumped and the dollar rose across the board, as some tallies pointed to Trump making gains over Vice President Kamala Harris in battleground states.
China's blue-chip CSI300 Index .CSI300 fell 0.27% after opening a tad higher, while Hong Kong's benchmark Hang Seng .HIS was down 2.5%.
Hong Kong-listed China tech stocks .HSTECH declined broadly in early trade, dragging down the Hang Seng. E-commerce giant JD.com 9618.HK slumped more than 5% while Meituan 3690.HK and Alibaba 9988.HK were down nearly 4%, respectively.
The U.S. presidential election will have a meaningful impact on China's economy and capital markets. As part of his pitch to boost American manufacturing, Trump has promised voters he will impose tariffs of 60% or more on goods from China.
China's equity market is in the midst of recovering from a years-long slump as authorities promise to address weak consumption and a downturn in the real estate sector. The CSI 300 index is up more than 20% since Sept. 23, when Beijing started rolling out rate cuts and stimulus.
But a Trump win could stymie that rally, with technology, defence and export sectors in the crosshairs of his policies.
Since both Democrats and Republicans are relatively united in antagonism to China, markets may not react dramatically until there are concrete policy changes announced.
"Although both candidates are probably hawkish toward China, Trump is still less predictable in terms of policy, so the prospect of a Trump win could still drag sentiment a bit," said Kenny Ng, strategist at China Everbright Securities International in Hong Kong.
Onshore markets were, however, holding out for more stimulus proposals and details from the Standing Committee of China's National People's Congress (NPC), which meets through Nov. 4-8.
"Onshore investors are more focused on the NPC meeting this week and are waiting to see if there will be more forceful stimulus coming through, which will have a bigger impact on the markets compared to the election," Ng said.
The offshore yuan CNH=D3 fell more than 0.8% versus the dollar, its weakest since mid-August. Its onshore counterpart CNY=CFXS was also down more than 0.55%, and China's major state-owned banks were selling dollars to prevent the yuan from weakening too fast, sources told Reuters.
Trump's proposed tariff and tax policies are viewed as inflationary and therefore likely to keep U.S. interest rates high and undermine currencies of trading partners.
During Trump's first presidency, the yuan weakened about 5% against the dollar during the initial round of U.S. tariffs on Chinese goods in 2018, and fell another 1.5% a year later when trade tensions escalated.
China stocks rally strongly https://reut.rs/3ZQNtV0
China's benchmark stock index logs biggest daily gain since 2008 https://reut.rs/4dmrDfq
U.S. presidential election's LIVE RESULTS https://www.reuters.com/graphics/USA-ELECTION/RESULTS/zjpqnemxwvx/
China markets during 2018-2020 trade war https://tmsnrt.rs/48iEIW6
Reporting by Shanghai and Hong Kong Newsroom, writing by Vidya Ranganathan; Editing by Muralikumar Anantharaman and Jacqueline Wong
Actifs liés
Dernières actualités
Avertissement : Les entités de XM Group proposent à notre plateforme de trading en ligne un service d'exécution uniquement, autorisant une personne à consulter et/ou à utiliser le contenu disponible sur ou via le site internet, qui n'a pas pour but de modifier ou d'élargir cette situation. De tels accès et utilisation sont toujours soumis aux : (i) Conditions générales ; (ii) Avertissements sur les risques et (iii) Avertissement complet. Un tel contenu n'est par conséquent fourni que pour information générale. En particulier, sachez que les contenus de notre plateforme de trading en ligne ne sont ni une sollicitation ni une offre de participation à toute transaction sur les marchés financiers. Le trading sur les marchés financiers implique un niveau significatif de risques pour votre capital.
Tout le matériel publié dans notre Centre de trading en ligne est destiné à des fins de formation / d'information uniquement et ne contient pas – et ne doit pas être considéré comme contenant – des conseils et recommandations en matière de finance, de fiscalité des investissements ou de trading, ou un enregistrement de nos prix de trading ou une offre, une sollicitation, une transaction à propos de tout instrument financier ou bien des promotions financières non sollicitées à votre égard.
Tout contenu tiers, de même que le contenu préparé par XM, tels que les opinions, actualités, études, analyses, prix, autres informations ou liens vers des sites tiers contenus sur ce site internet sont fournis "tels quels", comme commentaires généraux sur le marché et ne constituent pas des conseils en investissement. Dans la mesure où tout contenu est considéré comme de la recherche en investissement, vous devez noter et accepter que le contenu n'a pas été conçu ni préparé conformément aux exigences légales visant à promouvoir l'indépendance de la recherche en investissement et, en tant que tel, il serait considéré comme une communication marketing selon les lois et réglementations applicables. Veuillez vous assurer que vous avez lu et compris notre Avis sur la recherche en investissement non indépendante et notre avertissement sur les risques concernant les informations susdites, qui peuvent consultés ici.
