Weakness in Chinese assets marred an otherwise positive day for markets as US equity futures and stocks across much of Asia pushed higher on encouraging signs from debt-ceiling talks in Washington. Hong Kong shares slid Friday in a decline led by internet giants.
The Hang Seng Tech Index slumped as much as 2.4% as Alibaba Group Holding Ltd dropped in the wake of disappointing sales that add to signs of a faltering post-Covid rebound in China. Shares on mainland exchanges opened lower before edging into positive territory late in the morning session.
Data this week showed activity in the world’s second-biggest economy is losing momentum, with private firms barely increasing investment and households cutting back on goods.
Bloomberg reports that the offshore yuan depreciated to levels not seen since late last year. An official fixing above 7 per dollar reflected a willingness among officials to tolerate a weaker currency, potentially to spur domestic activity.
“The recovery in China is slowing down,” said Ashish Shah, chief investment officer, Goldman Sachs Asset Management, on Bloomberg Television. “We all expected it wouldn’t be a straight line — you will go through waves,” said Shah, adding that the central bank would “have to run a lot looser policies going forward.
