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China, Hong Kong stocks edge lower as Sino-U.S. tensions weigh

March 2, 2023By Reuters

Hong Kong stocks slipped on Thursday after posting their biggest daily gain in nearly three months in the previous session, with Sino-US tensions weighing on investor sentiment, while China shares dropped in the afternoon session ahead of a key parliamentary meeting.

** China’s blue-chip CSI300 Index  closed down 0.2%, and the Shanghai Composite Index lost 0.1%.

** Hong Kong’s Hang Seng benchmark lost 0.9%, while the China Enterprises Index slid 0.8%.

** The United States is seeking out allies about the possibility of imposing new sanctions on China if Beijing provides military support to Russia for its war in Ukraine, according to four US officials and other sources.

** China and Belarus agreed to a joint statement calling for peace in Ukraine, after Chinese President Xi Jinping met on Wednesday with Belarusian counterpart Alexander Lukashenko, a close ally of Putin.

** Hong Kong shares also tracked weakness in Asian markets, pressured by higher US yields amid fears that global central banks would keep raising interest rates to combat sticky inflation.

** Meanwhile, investors in China were waiting for more stimulus clues from the annual meeting of the National Party Congress, which kicks off this weekend and will set economic targets and elect a new leadership team.

** The CSI utilities index added 1.1% and the telecom index rose 1.4%, while the healthcare index lost 1.0%.

** The Hang Seng finance index was down 0.6%, commerce and industry slid 1.2%, while energy index climbed 1.0%.

** Tech giants listed in Hong Kong dropped 1.4%, with Alibaba down 4.7% and JD shedding 2.3%.

** Chinese EV maker Nio tumbled 13.2% after it reported fourth-quarter earnings below market expectations

(Reporting by Shanghai Newsroom; Editing by Subhranshu Sahu and Gareth Jones)

This article originally appeared on reuters.com

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