HK Stocks Down At Noon As Virus Fears Grow

Hong Kong shares finished Tuesday's morning session in the red as surging virus cases around the world prompt governments to impose fresh, economically painful containment measures.

The Hang Seng Index slipped 0.65 percent, or 170 points, to 26,218.

Mainland stocks also slipped on worries about rising Covid-19 deaths and the economic hit from stricter lockdowns, although strong Chinese economic data capped losses.

The CSI300 index fell 0.4 percent to 4,917 by the end of the morning session, while the Shanghai Composite Index lost 0.5 percent to 3,354.

The number of coronavirus deaths in the United States crossed 300,000 on Monday as the hardest hit nation started its first vaccine inoculations.

The markets were, however, supported by data showing that China's industrial output grew in line with expectations in November, expanding for the eighth straight month as the economic recovery gathered pace and global demand picked up.

China could make targeted policy adjustments as the economy improves, the statistics bureau said, after the release of the data.

The People's Bank of China rolled over maturing medium-term loans while keeping the interest rate unchanged for an eighth straight month.

"As China's economy recovers and monetary policy tightens marginally, limited money could tend to favour sectors with solid fundamentals and reasonable valuations," Dongxing Securities analysts said in a note. (AFP/Reuters)

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