Post-Chinese New Year, Hong Kong Dragged Down by Global Weakness
Hong Kong stocks weakened at the start of trading on Friday, reversing their gains from the previous session, as markets reopened after the Lunar New Year holiday. The benchmark index fell 233 points, or 0.9%, to 26,469, with investors returning to defensive positions amidst weakening global sentiment.
Pressure on sentiment came from two directions. First, mainland Chinese markets remained closed all week, resulting in thinner regional trading flows. Second, global risk appetite also weakened following escalating geopolitical tensions in the Middle East and overnight volatility on Wall Street, following a sharp decline in private equity stocks that rocked the market.
Domestically, market participants awaited the release of the January unemployment rate this Friday, after three consecutive periods of 3.8%. However, the index's decline was offset by optimism that travel and shopping demand in China during the Spring Festival period remained solid, which is expected to support consumption and economic activity.
On the stock exchange, technology and consumer discretionary stocks led the decline in the Hang Seng, although this was partially offset by strength in the property and financial sectors. The stocks that were most affected included Pop Mart (-3.3%), Xiaomi (-3.2%), Kuaishou Tech (-3.0%), and Tencent (-2.3%). On a weekly basis, the market remains on track to decline by around 0.6% so far. (asd)
Source: Newsmaker.id
