Hong Kong shares resumed their decline Monday morning following a severe typhoon over the weekend and under the long shadow of the US-China trade dispute.
The Hang Seng Index fell 1.8% to 500 points of its lowest level in more than a year. The benchmark had rallied 3.6% Thursday and Friday on optimism over trade talks, but sentiment turned on news Donald Trump wants to proceed with tariffs and a Wall Street Journal report that China may decline to take part in negotiations. The impact of Typhoon Mangkhut also weighed on stocks, with Macau casinos and airlines among the hardest hit.
“The market seems a bit concerned about Beijing dropping out of trade negotiations and there’s some profit taking pressure following the gains late last week,” said Daniel So, a Hong Kong-based strategist with CMB International Securities Ltd. “Investors will likely stay cautious due to uncertainties ahead of the mid-term election in the US.”
The Hang Seng Index fell 1.8% to 500 points of its lowest level in more than a year. The benchmark had rallied 3.6% Thursday and Friday on optimism over trade talks, but sentiment turned on news Donald Trump wants to proceed with tariffs and a Wall Street Journal report that China may decline to take part in negotiations. The impact of Typhoon Mangkhut also weighed on stocks, with Macau casinos and airlines among the hardest hit.
“The market seems a bit concerned about Beijing dropping out of trade negotiations and there’s some profit taking pressure following the gains late last week,” said Daniel So, a Hong Kong-based strategist with CMB International Securities Ltd. “Investors will likely stay cautious due to uncertainties ahead of the mid-term election in the US.”
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