May 8, 2024 at 5:05 am GMT
HONG KONG (Reuters) -China and Hong Kong stocks dropped on Wednesday, led by a decline in the property sector as market sentiment appeared to cool down from a strong rally.
The weakness also follows a Federal Reserve official's comments that the U.S. central bank may hold rates steady all year to fight inflation, putting outflow pressure on broad Asian stocks.
The CSI real estate index .CSI000952 lost 3% by midday, giving up the gains from the previous session.
Morgan Stanley analysts warned that near-term overbought technical signals in China equities have appeared.
"We expect the rally momentum to abate - don't chase at the index level," the analysts, led by Laura Wang, said in a note on Tuesday night.
** At the midday break, the Shanghai Composite index . SSEC was down 0.41% at 3,134.75 points.
** China's blue-chip CSI300 index .CSI300 was down 0.66%, with its financial sector sub-index .CSI300FS lower by 0.39%, the consumer staples sector .CSI000912 down 0.48%, the healthcare sub-index .CSI300HC down 1.44%.
** Chinese H-shares listed in Hong Kong . HSCE fell 0.42% to 6,499.39, while the Hang Seng Index .HSI was down 0.37% at 18,410.20.
** The smaller Shenzhen index . SZSC was down 1.16%, the start-up board ChiNext Composite index .CNT was weaker by 1.23% and Shanghai's tech-focused

STAR

50 index .

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50 was down 0.98%.
** Around the region, MSCI 's Asia ex-Japan stock index .MIAPJ0000PUS was weaker by 0.41% while Japan's Nikkei index .N225 was down 1.57%.
** The yuan CNY=CFXS was quoted at 7.2247 per U.S. dollar, 0.09% weaker than the previous close of 7.2181.
 Reporting by Summer Zhen; Editing by Janane Venkatraman 

Sumber : Reuters