China stocks fell for the first time in four days on Tuesday as traders assessed the outlook for corporate earnings and economic growth. Volatility on the benchmark Shanghai Composite Index also fell to about a four-month low.
The index declined 0.2 per cent, or 4.57 points, to 2,937.62 at the close. The daily swing in the benchmark has not exceeded 1 per cent over the past week on a closing basis, leaving the gauge's 60-day volatility close to its lowest level since March.
In Hong Kong, the Hang Seng Index added 0.1 per cent, or 64.74 points, to 28,619.62, for a fifth straight day of gains.
Sentiment has turned cautious after Dong-E-E-Jiao and Han's Laser Technology Industry, both blue-chip stocks, issued surprise warnings on Monday that their first-half profits might have more than halved.
The negative guidance was interpreted by some investors as a signal of moderation in corporate earnings growth. The earnings season has already kicked off, with all the 3,000-plus companies trading on the Shanghai and Shenzhen bourses required to release interim results through to the end of August.
"Sentiment is cautious because investors are worried that corporate earnings growth would have hit a low in the second quarter, and some companies would report earnings that are lower than expected," said Ken Chen Hao, strategist at KGI Securities in Shanghai. "Therefore, during the whole of the earnings season, the market isn't likely to do much."
Dong-E-E-Jiao, a maker of donkey hide gelatin, tumbled 5.6 per cent after slumping by the 10 per cent daily limit on Monday, while Han's Laser shed 2.1 per cent to 31.78 yuan, extending its 10 per cent decline recorded a day earlier.
Liquor distillers were also a drag on the market on Tuesday, with a gauge of consumer stocks dropping 1.3 per cent to emerge as the worst performer among industry groups. Luzhou Laojiao retreated 3 per cent to 84.90 yuan for its biggest decline in seven weeks. Jiangsu Yanghe Brewery Joint-Stock lost 1.3 per cent to 127.13 yuan.
Kweichow Moutai, the world's most valuable distiller, fell 0.8 per cent to 968 yuan before its first-half result on Wednesday. The distiller said on Friday profit for the six-month period probably increased by 26 per cent from a year earlier.
In Hong Kong, Brilliance China Automotive Holdings surged 5.6 per cent to HK$8.93, its biggest gain in three months, after the carmaker said it will convene a board meeting to review the issuance of a special dividend. The meeting is scheduled for July 25, Brilliance China said in an exchange statement on Monday night.
Casino operators were also among the top gainers, with Sands China and Galaxy Entertainment Group rising by at least 2.4 per cent.
Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.Artikel Asli