By Summer Zhen
HONG KONG, Jan 13 (Reuters) - China and Hong Kong stocks fell on Monday, with Hong Kong shares logging a six-day losing streak, on worries over the widening U.S.-China yield gap amid rising odds of fewer U.S. interest rate cuts.
** At the close, the Shanghai Composite index was down 0.25% at 3,160.76
** The blue-chip CSI300 index was down 0.27%, marking its fourth consecutive day of decline, with the financial sector sub-index down 0.53%.
** Meanwhile, the consumer staples sector was up 0.44%, the real estate index rose 1.71% and the healthcare sub-index added 0.44%.
** In Hong Kong, the benchmark Hang Seng index closed lower by 190.15 points or 1% at 18,874.14. The Hang Seng China Enterprises index fell 0.79% to 6,843.71.
** Tech giants dropped 0.9%, leading the decline.
** The sell-off followed strong U.S. jobs data on Friday that dealt a blow to hopes for more rate cuts and triggered a broad correction on Wall Street.
** "The market pullback may have more to go heading into the U.S. Presidential inauguration on Jan. 20, with the dollar's strength and a 'high-for-longer' outlook," JPMorgan analysts, led by Wendy Liu, said in a note.
** On the other hand, China's 10-year bond yield has tumbled over 100 basis points in a year to be around 1.6%, with the spread to U.S. Treasury yields the widest in 24 years.
** This increasing gap, mainly driven by the drop in Chinese yields, has increased market pressure, especially on Hong Kong stocks, CICC analysts said.
** They expect trading to be range-bound in the Hong Kong market.
** On the macro data front, China's exports gathered pace in December and imports recovered, Syair HK Hari ini closing out the year on a positive note although analysts believed that was helped by exports front-loading ahead of Donald Trump's inauguration rather than demand recovery.
** The smaller Shenzhen index ended up 0.06% and the start-up board ChiNext Composite index was higher by 0.362%. (Reporting by Summer Zhen; Editing by Savio D'Souza and Janane Venkatraman)
HONG KONG, Jan 13 (Reuters) - China and Hong Kong stocks fell on Monday, with Hong Kong shares logging a six-day losing streak, on worries over the widening U.S.-China yield gap amid rising odds of fewer U.S. interest rate cuts.
** At the close, the Shanghai Composite index was down 0.25% at 3,160.76
** The blue-chip CSI300 index was down 0.27%, marking its fourth consecutive day of decline, with the financial sector sub-index down 0.53%.
** Meanwhile, the consumer staples sector was up 0.44%, the real estate index rose 1.71% and the healthcare sub-index added 0.44%.
** In Hong Kong, the benchmark Hang Seng index closed lower by 190.15 points or 1% at 18,874.14. The Hang Seng China Enterprises index fell 0.79% to 6,843.71.
** Tech giants dropped 0.9%, leading the decline.
** The sell-off followed strong U.S. jobs data on Friday that dealt a blow to hopes for more rate cuts and triggered a broad correction on Wall Street.** "The market pullback may have more to go heading into the U.S. Presidential inauguration on Jan. 20, with the dollar's strength and a 'high-for-longer' outlook," JPMorgan analysts, led by Wendy Liu, said in a note.
** On the other hand, China's 10-year bond yield has tumbled over 100 basis points in a year to be around 1.6%, with the spread to U.S. Treasury yields the widest in 24 years.
** This increasing gap, mainly driven by the drop in Chinese yields, has increased market pressure, especially on Hong Kong stocks, CICC analysts said.
** They expect trading to be range-bound in the Hong Kong market.
** On the macro data front, China's exports gathered pace in December and imports recovered, Syair HK Hari ini closing out the year on a positive note although analysts believed that was helped by exports front-loading ahead of Donald Trump's inauguration rather than demand recovery.
** The smaller Shenzhen index ended up 0.06% and the start-up board ChiNext Composite index was higher by 0.362%. (Reporting by Summer Zhen; Editing by Savio D'Souza and Janane Venkatraman)