Most Hong Kong stocks fell, with an index of Chinese companies dropping for the first time in four days, as slower growth in industrial companies’ profits added to signs the world’s No. 2 economy is losing steam.
Hong Kong stocks rose, with the benchmark index snapping its longest losing streak in almost a year, as Morgan Stanley upgraded the outlook for Hong Kong stocks and amid speculation that the Chinese government may widen the yuan’s trading band within the next three days.
Most Hong Kong stocks fell after Citigroup Inc. cut its forecast for economic growth in China next year, overshadowing optimism that stimulus measures by the Federal Reserve will boost U.S. demand for Asian exports.
Hong Kong stocks retreated from a seven-week high with China Construction Bank Corp. leading the decline as Singapore’s sovereign wealth fund sold $2.4 billion of mainland lenders’ shares. Stocks also fell as unemployment in Europe climbed to a 15-year high.
Most Hong Kong stocks gained as Chinese manufacturing expanding faster than estimated, tempering concern that U.S. lawmakers’ inability to strike a budget deal will drag the world’s largest economy into recession.
Most Asian stocks fell, with the regional benchmark index trading near a 16-month high, amid concern U.S. budget negotiations are faltering and as a surging yen weighed on Japanese stocks even after the Bank of Japan boosted its asset purchases for the third time in four months.