Hong Kong stocks retreated on Wednesday, pushing the benchmark below the 18,000 mark for the first time in more than a month, as China inflation data sparked worries about domestic demand in the world’s second biggest economy.
The Hang Seng Index fell 1.3 per cent to 17,937.84 at the close, and a close below 18,000 was the first such instance since April 30. The Hang Seng Tech Index slid 1.7 per cent, while the Shanghai Composite Index rose 0.3 per cent.
Consumer prices increased 0.3 per cent from a year ago in May, China’s statistics bureau said on Wednesday. That compared with the consensus estimate of a 0.4 per cent increase by the economists tracked by Bloomberg. Producer prices fell 1.4 per cent for the 20th consecutive month of decline, reflecting the deflationary cycle.
“The deflationary pressure has not faded yet,” said Zhang Zhiwei, chief economist at Pinpoint Asset Management in Hong Kong. “A more comprehensive and…
