HK Equities Outperform Although Off Earlier Highs, China PMI Jumps

Hong Kong & Chinese equities are mixed today, with Hong Kong markets outperforming for the second straight session after a weak US jobs reading increased the hopes for a Federal Reserve interest rate cut. China Caixin PMI grew at the fastest growth in 10 months

• Hong Kong equities are higher today although well of morning highs, tech stocks are the top performers today with the HSTech Index up 0.80% and now trading back above all major EMAs. Property Indices are now lower for the day with the Mainland Property Index down 1.10%, the HS Property Index down 0.60%, the wider HSI is up 0.33%.
• China equites have underperformed today, the CSI300 is now down 0.20% with small-cap indices the CSI1000 and CSI2000 are down 0.30% and 1.10% respectively, the CSI300 Real Estate Index is off 1.80% while the growth focused ChiNext Index is up 0.12%
• Data: Hong Kong S&P Global PMI was 49.2 in May dropping from 50.6 in April, while China Caixin PMI composite for May was 54.1 up from 52.8 in April, and Services PMI was 54.0 vs 52.5 est.
• In the property space, DaFa Properties group have had their wind-up hearing adjourned until June 24.
• (MNI): MNI China Press Digest June 05: A-shares, EU-China, SOEs (See link)
• Looking ahead: Tomorrow we have China Trade Balance data.