Hong Kong Stocks Under Pressure, Widespread Selling Drags Down Hang Seng
The Hong Kong stock market weakened in trading on Thursday morning (February 5th). The benchmark index fell 336 points, or around 1.3%, to 26,510, reversing the previous session's slight gains. The selling was fairly widespread across various sectors, with the strongest pressure seen in technology, financial, and consumer stocks.
Sentiment worsened after Wall Street closed lower overnight. Pressure stemmed from the continued sell-off in technology stocks, coupled with weaker-than-expected US January employment data. This combination prompted investors to reduce their exposure to riskier assets.
The decline was also exacerbated by a decline in mainland Chinese stocks. Investors were again concerned that China's economic momentum was losing steam, particularly as manufacturing and construction sectors continued to show persistent weakness.
On the stock market, mining companies were the main drags early in the session. China Gold International fell 4.7%, Zijin Mining fell 4.1%, and Zhaojin Mining fell 1.6%. Pressure in the commodities sector added to the index's burden.
Several other major stocks also suffered. SMIC fell 3.5%, China Hongqiao fell 3.4%, and Tencent fell 2.2%. Meanwhile, Baidu only fell 0.7% despite announcing its first dividend plan in the company's history and a share buyback program—but this news was not enough to offset the defensive market sentiment.
Source: Newsmaker.id
