E-commerce giant Alibaba Holding, Inc. BABA and some major Chinese electric vehicle stocks bucked a broader slide in Hong Kong equities on Wednesday morning amid mostly weak global cues.
Hang Seng Slides: The benchmark Hang Seng Index opened the session lower and fell sharply in late morning trading. At press time, the blue-chip average was down 1.37% at 21,664.32. Banking, oil, and property stocks were among the worst hit.
The decliners outnumbered the gainers among the top 30 components of the index. The biggest losers included oil giant CNOOC and JD.com, Inc. JD, which shed 6% and 4%, respectively.
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Alibaba, EV Stocks Rise: Alibaba, which has been staging a steady recovery, rose more than 1.3%. The stock is higher for a third straight session, with the newfound optimism stemming from hopes that the worst may be behind.
Tech peer Tencent Holdings Limited TCEHY is trading down less than a percent.
Electric vehicle stocks have gained ground. XPeng, Inc. XPEV and Li Auto LI gained about 2% each, while Nio, Inc. NIO advanced modestly.
Global Cues: U.S. stocks ended Tuesday’s session on a mixed note as traders looked ahead to the release of the minutes of the Federal Reserve‘s June monetary policy meeting due on Wednesday. Meanwhile, the major averages in Europe declined sharply, dragged by recession fears.
Stocks in Japan, China, Australia, Korea, and Taiwan were all subdued on Wednesday, while New Zealand’s benchmark index rose over 1%. The negative sentiment in the Asian markets reflected investor concerns regarding a potential global recession that could push economies to the brink.
After dropping below $100-a-barrel on Tuesday, WTI-grade crude oil is seen rebounding above the psychological mark.
Photo via Irina Anosova on Shutterstock