Alibaba, Nio, Most Peers Buck Weaker Hang Seng Open After Wall Street Slide As Focus Turns To Jackson Hole Summit

Zinger Key Points
  • Alibaba opens in green, XPeng down over 2%, Li Auto gains 2.36%
  • PBoC calls for financial institutions to boost loan issuance to the real economy
  • Investors await Indonesia central bank’s rate decision and Singapore’s core inflation data
Alibaba, Nio, Most Peers Buck Weaker Hang Seng Open After Wall Street Slide As Focus Turns To Jackson Hole Summit

Hong Kong's benchmark stock index opened lower on Tuesday morning, tracking a weak finish overnight on Wall Street on the back of rate-hike fears, as investors looked toward U.S. Federal Reserve Chair Jerome Powell's speech at the Jackson Hole Summit later this week.

The Hang Seng Index was down 0.5% at the open, as traders digested a weak Australian Purchasing Managers’ Index and eyed a central bank rate decision in Indonesia as well as core inflation data from Singapore. 

Hong Kong Stocks Today
Stock Movement
Alibaba Group Holding Ltd. BABA  0.79% Inc JD 0.91%
Baidu Inc BIDU 1.01%
Tencent Holdings Ltd. TCEHY           0.58%
Meituan MPNGF 1.11%
Nio Inc NIO 1.34%
XPeng Inc XPEV -1.53%
Li Auto Inc LI 3.37%

Macro News: The People’s Bank of China (PBoC) said late Monday that financial institutions, especially major state-owned banks, should boost loan issuance to the real economy, Bloomberg reported. The lenders should also improve credit support for small- and micro-enterprises, green development, scientific and technological innovation and other fields, it said.

The PBoC cut its benchmark loan and mortgage reference rates on Monday. One-year loan prime rate (LPR) was reduced from 3.7% to 3.65%, while the five-year LPR, the reference for mortgages, was slashed from 4.45% to 4.3%.

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Key Levels: Nio shares were up 1.3% in Hong Kong after falling over 4% in the previous session. Their next key support level lies in the HKD148-146.3 range.

Shares of Alibaba fell over 1% on Monday in Hong Kong trading. The next key support for the stock lies in the HKD87.5-86.80 range.

Company News: Li Auto's augmented reality glasses in partnership with AR firm Leiniao will be available on the former’s online store starting Thursday, reported CnEVPost.

Chinese tech giant Tencent Holdings has received a patent for a blockchain-based missing person’s poster, reported CoinTelegraph, citing local media.

Global News: U.S. futures were in the green in Tuesday morning Asia session. The Dow Jones futures were up 0.06%, while Nasdaq futures gained 0.15%. The S&P 500 futures were up 0.07%.

Elsewhere in Asia, Australia’s ASX 200 lost 0.49%. Japan’s Nikkei 225 was down 1.14%, while China’s Shanghai Composite index shed 0.1%. South Korea’s Kospi lost 0.39%.

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