HSI Snaps Rally As Mainland Data Spooks Investors

Hong Kong stocks sank on Monday on profit-taking following a six-day rally, while investors were also left disappointed by below par mainland trade figures.

The Hang Seng Index lost 1.4 percent, to end at 26,298.

On the mainland, the Shanghai Composite Index lost 0.7 percent, to close at 2,535, while the Shenzhen Composite Index shed 0.7 percent, to 1,303.

Japanese market was closed for a holiday.

Singapore lost 0.5 percent. Taipei was 0.5 percent lower, Mumbai lost 0.8 percent and Jakarta shed 0.9 percent.

Sydney was marginally lower but Wellington and Manila rose.

With few catalysts to drive buying, equities were ripe for selling after last week's healthy gains, with the US government shutdown – now in its fourth week and showing no sign of ending soon – instilling a sense of unease.

Data on Monday also showed China's imports and exports fell last month, signalling that the US tariffs are beginning to bite.

"China's weaker-than-expected 2018 trade data has seen the China equity market dive lower. Then sentiment went deeper into the tank on the release of China December trade data, which missed the mark badly," said Stephen Innes, head of Asia-Pacific trade at Oanda.

On currency markets, the pound is holding up despite Prime Minister Theresa May's expected defeat in Tuesday's vote, with lawmakers across all parties against her Brexit deal.

"The pound has found some bid with investors looking at a potential extension of [the EU exit deadline]. It's not so much the fact of the extension but the apparent coalescence of opinion around no-deal being a no-no," said Neil Wilson, chief market analyst at Markets.com. (AFP)