Local shares soft, as investors eye US inflation data

Investors traded cautiously on Wednesday, bringing a mixed picture to markets in the region ahead of the release of the closely watched US inflation data.

Locally, the Hang Seng Index opened 10 points lower and see-sawed in a narrow range during the morning session. It stayed in the red after lunch and finished down 38 points, or 0.1 percent, at 28,742, on turnover of HK$116.4 billion.

Major tech shares mostly underperformed. Meituan gave up 1.3 percent, Xiaomi retreated 1.2 percent and Alibaba declined 1.1 percent.

But the biggest blue-chip loser of the day was Alibaba Health Information Technology, which tumbled 2.5 percent.

Oil producers were strong as the commodity’s prices hovered near their highest level in more than a year. CNOOC rallied almost three percent, while PetroChina gained 1.8 percent and Sinopec added 1.7 percent.

Mengniu Dairy was the benchmark’s biggest gainer, jumping 4.8 percent.

Mainland infant formula maker China Feihe slumped 6.6 percent, after media across the border quoted its chairman as forecasting a cliff-like drop in sales in the next couple of years.

Markets across the border headed in different directions, as resources firms benefited from data showing factory gate inflation rose at its fastest pace in 12 years.

The Shanghai Composite Index advanced 0.3 percent, while the CSI300 index was up just under 0.1 percent. But the Shenzhen Composite inched down 0.1 percent.

In Japan, the Nikkei gave up 0.4 percent. Seoul’s Kospi was one percent weaker. Taiwan edged down 0.6 percent. Australia and Singapore each lost about 0.3 percent.