Hong Kong's benchmark Hang Seng Index lost over 1.9% in opening trade to hit 2011 lows after the U.S. Federal Reserve raised interest rates by 0.75% and indicated they could be hit as high as 4.6% next year.
That dented stocks of U.S.-listed Chinese EV makers, whose business prospects depend a lot on interest rates.
| Stock | Movement |
|---|---|
| Alibaba Group Holding Ltd. (NYSE:BABA) | -3.13% |
| JD.com Inc (NASDAQ:JD) | -3.3% |
| Baidu Inc (NASDAQ:BIDU) | -3.55% |
| Tencent Holdings Ltd. (OTC:TCEHY) | -1.3% |
| Meituan (OTC:MPNGF) | -3.34% |
| Nio Inc (NYSE:NIO) | -8.86% |
| XPeng Inc (NYSE:XPEV) | -13.86% |
| Li Auto Inc (NASDAQ:LI) | -6.26% |
XPeng shares nosedived 13% at the open, while Nio shed over 8%. Li Auto shares lost over 6%. Higher interest rates mean buying cars would take more money out of a consumer’s pocket in terms of monthly installments.
The Bank of Japan is set to announce its policy decision today.
Goldman Sachs Group Inc. (NYSE:GS) has sharply reduced its 2023 economic growth forecast for China, forecasting that gross domestic product will likely rise 4.5% in 2023, which is down from a previous projection of 5.3%, reported Bloomberg citing a note written by Goldman’s economists.
Taiwan’s government has said it will never permit China to "meddle" in its future after a Chinese government spokesperson said Beijing was willing to make the utmost effort to strive for a peaceful "reunification" with the island, reported Reuters.
Company News: China’s leading online travel service provider Trip.com Group Limited (NASDAQ:TCOM) reported a second-quarter profit of RMB 43 million ($6 million) compared to a net loss of RMB 659 million ($93.5 million) a year earlier
China Evergrande Group (OTC:EGRNF) said on Wednesday it was mulling transferring some assets to its property unit in order to settle some of the unit's debt payments, reported Reuters.
Top Gainers and Losers: WuXi Biologics (Cayman) Inc. and Galaxy Entertainment Group Limited were the top losers among the Hang Seng constituents, having shed over 3.5%. There were no gainers on Thursday.
Global News: U.S. futures traded in the red on Thursday morning Asia session. The Dow Jones futures were down 0.7% while the Nasdaq futures lost 1.21%. The S&P 500 futures shed 0.93%.
Elsewhere in Asia, Australia’s ASX 200 remained closed on Thursday. Japan’s Nikkei 225 was down 1.16% while China’s Shanghai Composite index lost 0.15%. South Korea’s Kospi was down 1.49%.
