China and Hong Kong Shares Extend Losses as Investors Turn Cautious Ahead of US Data
Hong Kong: Stock markets in China and Hong Kong moved lower on Tuesday, extending recent losses as investor sentiment weakened across Asia ahead of key economic data releases from the United States.
China’s benchmark Shanghai Composite Index dropped as much as 1.3 percent during the session, touching its lowest point since October 13, before closing down 1.1 percent at 3,815.84. The CSI 300 Index, which tracks major blue-chip stocks, ended the day 1.2 percent lower after briefly hitting a three-week low earlier in trading.
Selling pressure was widespread across sectors. Shares linked to rare earth materials led the decline, falling 2.9 percent. New energy stocks slipped 2.4 percent, while the artificial intelligence sector dropped 2.5 percent amid growing concerns that valuations in the AI space may be overheating.
Market sentiment turned cautious after recent economic indicators pointed to continued weakness in China’s domestic fundamentals. Analysts noted that with most major policy meetings for the year already concluded, stronger catalysts may be required to support a sustained market rebound.
Analysts at Nanhua Futures said the market is likely to remain range-bound in the near term. They added that upcoming US economic data could increase volatility, particularly if it influences expectations around interest rate cuts.
Providing limited support to the broader market, the CSI Intelligent Vehicle Index rose 0.4 percent after Chinese regulators approved two domestic vehicles equipped with Level-3 autonomous driving technology, marking a first for the country.
In Hong Kong, losses were also evident. The Hang Seng Index fell 1.5 percent, while the Hang Seng China Enterprises Index declined 1.8 percent. The Hang Seng Tech Index dropped as much as 2.7 percent, extending its fall to nearly 20 percent from its October peak.
Across the wider Asian region, markets remained under pressure as investors adopted a risk-averse stance ahead of the upcoming US data releases, adding to fragile market sentiment.
