Alibaba, Nio Slip: Hang Seng Marks Weak Start To 2023 After Gloomy China Factory Activity Data

Hong Kong stocks opened mixed on the first trading day of 2023, with the benchmark Hang Seng losing 0.36% in morning trade. The market seems to be taking into account the fact that China's factory activity narrowed at a faster pace in December dragged by rising COVID-19 infections.

While Alibaba and Nio lost close to 1%, shares of Meituan lost over 2% in opening trade. Shares of Xpeng and Li Auto were higher by over 2% and 5%, respectively.

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Macro News: China's factory activity narrowed at a faster pace in December as rising COVID-19 infections disrupted production and weighed on demand, reported Reuters. The Caixin/Markit manufacturing purchasing managers' index declined to 49 in December from 49.4 in November.

European Union government health officials will hold talks on Wednesday on a coordinated response to the surge in COVID-19 infections in China, reported Reuters citing the Swedish EU presidency.

Company News: Tesla Inc's (NASDAQ: TSLA) China head, Tom Zhu, has reportedly taken over responsibilities for sales, service and deliveries in North America.

Warren Buffett-backed BYD Co. (OTC: BYDDF) (OTC: BYDDY) sold 235,197 new energy vehicles (NEVs) in December, hitting a new all-time high, reported CnEVPost.

Top Gainers and Losers: Meituan and Country Garden Services Holdings Company Limited are the top losers among Hang Seng constituents, shedding over 4% and 3%, respectively. WuXi Biologics (Cayman) Inc. and CSPC Pharmaceutical Group Limited are the top gainers, rising 1.5% and 0.12%, respectively.

Global News: U.S. futures traded in the red on Tuesday morning Asia session. The Dow Jones futures lost 0.17% while Nasdaq futures shed 0.39%. The S&P 500 futures were trading lower by 0.25%.

Elsewhere in Asia-Pacific, Australia’s ASX 200 was trading lower by 1.8%. Japan’s Nikkei 225 remained closed for a holiday while China’s Shanghai Composite index fell 0.31%. South Korea’s Kospi lost 1.53%.

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