Hang Seng Turns Early Gains to Finish Lower

The Hang Seng fell 39 points or 0.2% to end at 19,241 on Thursday after trading modestly higher in the morning, with eventual losses in financials and property.

Markets finished lower for the fourth session after fresh data showing China's annual inflation rate hit a 9-month low of 0.1% in December while producer deflation continued for the 27th month.

Traders digested details on Beijing's expanded consumer trade-in scheme amid a persistent drag from the property sector.

Meanwhile, US futures dropped sharply, on mounting concerns that there may be fewer rate cuts this year as inflation risks persist. In other news, President-elect Trump is mulling declaring a national economic emergency to enforce his extensive tariff policies.

Li Auto saw steep losses (-4.4%), along with Sinotruk Ltd. (-2.9%) and Meituan (-1.8%).

By contrast, Tencent Hlds. surged 1.6%, escaping from a 4-month low as it bought back shares after the US blacklisted some tech firms from China over alleged military ties.