Hang Seng China gauge records longest losing streak this year
Steel rebar futures plunge most this week since at least 2009
The Shanghai Composite Index slid 2.8 percent at the close, erasing gains for the week, as Shaanxi Coal Industry Co. and Hainan Mining Co. led a decline among energy and metals stocks. This comes just as a frenzy that had gripped Chinese commodity markets begins to abate, with October contracts for steel reinforcement bars slumping a record 9.5 percent this week. The Hang Seng China Enterprises Index fell for a fifth day, the longest run of losses this year.
The declines reflect pessimism on the economy, with a range of data coming in lower than forecast. Both private and official manufacturing gauges released in the past week missed predictions, while figures due Sunday are estimated to show that export growth was unchanged in April after a surprise 11.5 percent jump in March. The nation’s foreign-exchange reserves likely declined, according to a Bloomberg survey, in an indication of renewed capital outflows.
The Shanghai Composite closed at 2,913.25, while the Hang Seng China gauge retreated 1.8 percent in Hong Kong. Trading volumes in Shanghai were 8.7 percent above the 30-day average. The Hang Seng Index slid 1.7 percent at the close, taking a weekly decline to 4.5 percent, the most since the period through Feb. 12. Read more