Alibaba, Nio Shed Over 2%: Hang Seng Opens Weaker As Investors Turn Cautious Ahead Of US Jobs Data

Hong Kong stocks opened mixed on Friday morning as investors and traders remained cautious ahead of the release of U.S. jobs data — a key factor that will determine the Federal Reserve’s future course of action. The benchmark Hang Seng fell 0.35% as shares of Alibaba rose over 2%, while Meituan jumped over 3%. Nio shares opened over 2% lower.

“FOMC members go into a blackout on Saturday ahead of the 13-14 December meetings, with expectations squarely centered on a 50bp rate hike. It would take a very strong November labor market report to alter that view,” ANZ Research wrote in a note.

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Macro News: China is likely to announce a moderation in its COVID-19 quarantine protocols in the coming days and a reduction in mass testing, reported Reuters, citing sources.

China's economy will keep expanding at a reasonable speed with stable employment and prices, finance minister Liu Kun said in a speech, Reuters reported.

Company News: U.S. prosecutors have asked a judge to dismiss bank fraud and other charges against Meng Wanzhou, the chief financial officer of China's Huawei Technologies, reported Reuters.

Xpeng reported a steep decline in deliveries for November compared to a year ago, with deliveries falling 63% year-over-year to 5,811. The company expects to turn things around in December.

Top Gainers and Losers: Alibaba Health Information Technology Limited and Meituan were the top gainers among Hang Seng constituents, having risen over 6% and 4%, respectively. Longfor Group Holdings Limited and Country Garden Services Holdings Company Limited were the top losers, having lost over 5% and 3%, respectively.

Global News: U.S. futures traded in the red on Friday morning Asia session. The Dow Jones futures declined 0.29% while the Nasdaq futures lost 0.46%. The S&P 500 futures were trading lower by 0.36%.

Elsewhere in Asia-Pacific, Australia’s ASX 200 was down 0.7%. Japan’s Nikkei 225 traded 1.79% lower while China’s Shanghai Composite index fell 0.13%. South Korea’s Kospi fell 1.09%.

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