Nio, XPeng Fall Over 4%, Alibaba Edges Down: Hang Seng Slips As Investors Brace For China, US Inflation Data

Hong Kong shares opened in the red on Wednesday, with the benchmark Hang Seng Index losing 0.83% in opening trade as investors turned their eyes toward inflation data from China and the U.S.

EV shares took a hit, with Nio and Li Auto falling more than 5.5% in opening trade. Shares of Tesla Inc TSLA rival XPeng fell over 3.5%.

Macro News: Taiwan’s military has commenced a two-day exercise, firing dozens of shells off its southern coast in a simulation to defend the island in a follow-up to the week-long Chinese military drills, reported the Wall Street Journal. 

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More trade skirmishes are expected as Australia commenced an anti-dumping investigation into Chinese aluminum extrusions, reported the South China Morning Post. 

Japan’s wholesale inflation softened in July, with prices rising 8.6% compared to the 9.4% seen in June, reported Reuters.

Company News: Nio has started allowing its customers to test drive its new SUV ES7 post locking in orders beginning Aug. 2, according to a report.

Taiwan's national security officials want to force Apple Inc AAPL supplier Foxconn to withdraw an $800 million investment in Chinese chipmaker Tsinghua Unigroup, reported the Financial Times.

Global Markets: U.S. markets ended in the red on Tuesday, with the Nasdaq losing 1.19% on the back of weaker chip stocks. The S&P 500 lost 0.42%, while the Dow Jones Industrial Average shed 0.18%.

On Wednesday, Australia’s ASX 200 lost 0.18%, Japan’s Nikkei 225 fell 0.54%, and the South Korean Kospi shed 0.62%. China’s Shanghai Composite index was down 0.16%.

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