Hong Kong stocks slid amid weaknesses in regional markets as investors dialled down risk-taking before Nvidia’s earnings report, seen as a big test for global AI-driven rally. Stock buy-back programmes by JD.com and Anta Sports Products tempered losses.
The Hang Seng Index dropped 1 per cent to 17,700.93 at the local noon trading break. The Tech Index weakened 1.8 per cent, while the Shanghai Composite Index declined 0.6 per cent.
Baidu fell 3.1 per cent to HK$81.90, NetEase dropped 2.2 per cent to HK$128.70 while Alibaba Group Holding declined 1.1 per cent to HK$79.05. Nongfu Spring slumped 11.6 per cent to HK$26.70 after earnings in the first half grew by the slowest since its listing in 2020.
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Nvidia, the world’s largest artificial intelligence and computing firm, will issue its report card in New York on Wednesday. Investors will look for signs if the stock’s 160 per cent rally this year – and about 1,000 per cent from its low in October 2022, according to Bloomberg data – is justified.
Can Nvidia deliver and live up to market expectations? Photo: Reuters alt=Can Nvidia deliver and live up to market expectations? Photo: Reuters>
Earnings reports are expected to dictate the short-term trend of the stock market, said Kenny Ng, a strategist at Everbright Securities. Banks, which have a large sector weighting in the benchmark index, will be pivotal in setting the direction in the local market, he added.
Losses were restrained amid stock buy-back plans. JD.com rose 0.9 per cent to HK$102.70 after announcing a US$5 billion programme through August 2027. Sportswear maker Anta jumped 4.1 per cent to HK$74.60 following a plan to buy back as much as HK$10 billion (US$1.28 billion) of its own stock over 18 months.
Two companies began trading in mainland China. China Capital Outlets Close-end Infrastructure Fund rose 4 per cent to 2.57 yuan in Shanghai, while aviation technology firm Anhui Jialiqi soared 254 per cent to 64 yuan in Shenzhen.
Elsewhere, Japan’s Nikkei 225 Index dropped 0.1 per cent, Australia’s S&P/ASX 200 fell 0.4 per cent and South Korea’s Kospi declined 0.5 per cent.
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