HONG KONG: Hong Kong stocks saw their earlier losses melt away and closed marginally higher at the close of Tuesday’s trading.
Data showing China’s consumer-price inflation at its lowest in five years was balanced by news that the Chinese central bank had injected liquidity into the markets helping the sentiment.
The Hang Seng Index HSI, +0.03% ended in positive territory, up less than 0.1%.
Earlier in the day, official data showed that China’s consumer-price index rose 0.8% in January from a year earlier, down from a 1.5% gain in December, marking the lowest increase since November 2009. The producer-price index fell 4.3% year-on-year in January, accelerating from a 3.3% drop in the previous month.
Meanwhile, the People’s Bank of China announced that it had pumped 80 billion yuan ($13 billion) into the banking system via reverse repurchase agreements.
In Hong Kong, Chinese auto makers mostly rose, as data from an industry group showed China’s domestic auto sales climbed 7.6% in January from a year ago. Brilliance China Automotive Holdings Ltd. 1114, +2.22% jumped 2.2%, and Dongfeng Motor Group Co., Ltd. 0489, +1.59% advanced 1.6%.
However, HSBC Holdings plc 0005, -1.30% declined 1.3%, extending losses after a report over the weekend on alleged tax evasion and money laundering at its Swiss unit.
