HONG KONG: Hong Kong stocks reversed opening gains and turned lower Tuesday morning after China’s wholesale deflation worsened in February, even as consumer inflation printed better than estimates.
The Hang Seng Index HSI, -0.45% dropped 0.2% after opening with a 0.1% gain. Hong Kong-listed mainland Chinese shares retreated, giving back some previous broad gains fueled by reports that China’s regulator might allow commercial banks to enter the brokerage industry. China Minsheng Banking Corp. 1988, -0.55% 600016, -1.30% CMAKY, -3.45% pulled back 1.6%, China Merchants Bank Co. 3968, -1.04% CIHHF, +7.37% 600036, -1.23% gave up 1.5%, and Bank of China Ltd. 3988, -1.40% BACHY, +1.58% 601988, -0.99% bobbled 1.2% lower. Macau casino shares took heavy losses after J.P. Morgan and Deutsche Bank both cut their respective target prices for the sector. Wynn Macau Ltd. 1128, -5.46% WYNMF, -1.04% slid 4.9%, Melco Crown Entertainment Ltd. 6883, -5.76% MPEL, -0.50% fell 4.4%, MGM China Holdings Ltd. 2282, -4.74% MCHVF, -4.77% dropped 3.4%, and Galaxy Entertainment Group Ltd. 0027, -4.07% GXYEF, -2.74% traded 2.7% lower. Oil shares also declined after a steep drop in Brent crude futures overnight: Cnooc Ltd. 0883, -1.84% CEO, +0.30% shed 1.8%, China Petroleum & Chemical Corp. (Sinopec) 0386, -0.65% SNP, +0.57% lost 0.8%, and PetroChina Co. 0857, -0.48% 601857, -0.64% PTR, +0.75% traded 0.6% lower. Over on the Chinese mainland, the Shanghai Composite Index SHCOMP, -0.11% fell 0.5%.
