SHANGHAI: China stocks ended lower on Tuesday, erasing earlier gains ahead of trade data, despite expectations of more policy easing to aid the sluggish economic recovery.
China’s blue-chip CSI300 Index closed down 0.9% and the Shanghai Composite Index dropped 1.2%.
Hong Kong’s benchmark Hang Seng slipped 0.1%, while the Hang Seng China Enterprises Index added 0.2%.
Investors are closely watching the May export and import data due on Wednesday. According to a Reuters poll forecast, imports contracted in May, while exports fell for the first time in three months.
“The upcoming economic data, including the consumer inflation data due on Friday, is closely watched as they may provide the reason for more policy support from the central bank,” said Khoon Goh, head of Asia research at ANZ.
China will likely further cut banks’ reserve ratio and interest rates in the second half of this year to support the economy, the China Securities Journal reported, citing policy advisers and economists.
Comments
Comments are closed.