(Updates to market close)
SHANGHAI, May 9 (Reuters) - Chinese and Hong Kong stocks
declined on Tuesday, as investor sentiment was dampened after
trade data pointed to weak domestic demand, while a rally of
financial shares in the morning session waned in late trade.
** China's blue-chip CSI300 Index closed down
0.9%, while the Shanghai Composite Index lost 1.1%.
** Hong Kong's benchmark Hang Seng Index was down
2.1%, while the China Enterprises Index tumbled 2.4%,
both logging the worst daily performance in nearly two months.
** China's imports contracted sharply in April, while
exports grew at a slower pace, reinforcing signs of feeble
domestic demand despite the lifting of COVID curbs and heaping
pressure on an economy already struggling in the face of cooling
global growth.
** UBS analysts wrote in a note that imports data fell more
than expected, indicating domestic demand remains weak despite
policy support.
** Iris Pang, Chief Economist of Greater China at ING, said
that weak import data overshadowed positive export growth in
April.
** "The positive growth in exports, however, mainly a result
of the low base from last year's COVID-19 lockdown," she said.
** "The notable slowdown in exports confirms our skepticism
about the sustainability of the export rebound," said analysts
at Barclays, adding that they expect exports to continue to
weaken in coming months.
** Financial stocks, which were leading gains in the morning
session and past few days, lost momentum in late trade. Ping An
Insurance Group Co of China Ltd lost 2.6%.
** Meanwhile, China International Capital Corp Ltd jumped 10%, hitting the daily upper circuit limit,
while China Galaxy Securities Co Ltd climbed 9.3%.
** In Hong Kong, tech stocks tumbled 3.0%, with
Tencent , Alibaba , and Meituan down
3.6%, 3.1%, and 2.9%, respectively.
(Reporting by Shanghai Newsroom; Editing by Rashmi Aich and
Varun H K)
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