Hang Seng Plummets: Trump Effect + China Data
The Hang Seng Index fell sharply on Monday (March 2), dropping 571 points (-2.1%) to close at 26,060. This decline erased the previous session's gains and put the Hong Kong stock exchange at a six-week low, amid pressure across nearly all sectors.
Sentiment worsened after US stock futures weakened, triggering a wave of risk-off in Asia. Concerns mounted as tensions in the Middle East escalated, with President Trump warning that the conflict could last for another four weeks and asserting that operations would continue until US targets were met.
In China, risk appetite was also depressed after several automakers reported a sharp decline in sales in February. The market assessed that disruptions from the Lunar New Year holiday season had also affected performance in the world's largest automotive market, making investors more cautious about the outlook for domestic demand.
Caution is also heightened ahead of the release of key data: China's February PMI and Hong Kong's January retail sales, due later this week. These data have the potential to determine whether the slowdown is temporary or signals a longer-term trend.
However, the Hang Seng's decline was not further affected by support from mainland Chinese stocks. Expectations that Beijing might introduce measures to help stabilize the market ahead of a crucial parliamentary meeting prompted some investors to refrain from excessive selling.
Meanwhile, investors also began to look to energy stocks as oil prices surged. However, technology and consumer stocks remained the main drags, with the biggest decliners being Xiaomi (-5.2%), SMIC (-4.7%), Meituan (-4.6%), Cathay Pacific (-4.2%), and Longfor (-2.3%).
Source: Newsmaker.id
