HSI logs losses on lingering inflation fears

The Hang Seng Index finished lower in choppy trade on Friday and Asian markets were down as well, amid ongoing concerns about inflation and economic recovery.

Surging bond yields and remarks by US Federal Reserve chairman Jerome Powell that inflation will likely pick up temporarily triggered the dumping of more tech stocks and pulled the Nasdaq into the red overnight.

Locally, the Hang Seng Index fell below the 29,000-point mark and saw its losses widen to 723 points in the morning.

It returned to positive territory after lunch and seesawed between gains and losses before wrapping up the day 138 points or 0.47 percent lower at 29,098.

Turnover reached HK$240.4 billion.

For the week, local shares put on 0.4 percent.

Tech and biotech firms remained under pressure on Friday. Xiaomi shed 3.7 percent to become the biggest loser on the blue-chip index. Tencent retreated 1.6 percent. WuXi Biologics and Sino Biopharmaceutical each slid more than 2 percent.

Mainland banks bucked the trend to close higher. ICBC was the day’s top gainer, climbing 3.6 percent. Bank of China was up 2.2 percent. Bank of Communications and China Construction Bank each advanced 1.7 percent.

Shares across the border recouped earlier losses after Beijing set a modest annual economic growth target. The Shanghai Composite Index finished flat, while the blue-chip CSI300 index trimmed 0.3 percent. The Shenzhen Composite index edged up 0.2 percent.

Around the region, Tokyo’s Nikkei shed 0.2 percent. The Kospi in South Korea the slipped 0.6 percent. Taiwan edged down 0.3 percent. Australia declined 0.75 percent. Singapore was about 0.1 percent lower.