May 3, 2011 (Chinavestor) Chinese stocks were mixed in Asia on Tuesday. The Hang Seng Index (INDEXHANGSENG:.HSI) took clues from trading in the U.S. while investors on the mainland remained bullish, at least for the short run. The Shanghai Composite Index (SHA:000001) rose 25.1 points or 0.9% after slower manufacturing data made investors to speculate that interest rate hikes may not be imminent.
Airliners did relatively well among components of the Hang Seng Index (INDEXHANGSENG:.HSI) as price of oil declined but most components of the index ended the day in the red.
Financials fell the most among components of the Shanghai Composite Index (SHA:000001) as internet rate hikes are likely to be delays after disappointing manufacturing growth data.
Most components of key Chinese ETFs fell in Asia for the day. Seven out of 25 components of the iShares FTSE/Xinhua 25 China Index (NYSE:FXI) advanced, boding ill for large cap Chinese ADRs ahead the opening bell. But the sell-off was far from universal among smaller caps as components of the Guggenheim China Small Cap ETF (NYSE:HAO) testify.
Earnings will play an important role but economic news, such as interest rate hike in India, continued to hurt overall market sentiment.