Hang Seng Retreats Sharply at Hong Kong Stock Market
The Hang Seng Index tumbled 326 points or 1.6% to close at 20,478 on Monday, following a 3.6% surge in the previous session. Losses were broad-based, with tech, consumers, and financials burdening the index. Traders were unimpressed by a 25bps cut to both the one-year and five-year loan prime rates in China, as the moves were already signaled by PBoC Governor Pan Gongsheng last Friday
Caution also builds ahead of China's upcoming legislative meeting, expected to approve increased fiscal spending and raise the government bond issuance quota. Concerns over potential escalation in the Middle East further contributed to a cautious mood, as finance ministers and central bank heads gathered in Washington for the IMF and World Bank's annual meetings this week.
Meanwhile, US futures were mixed as investors awaited more earnings reports and the approaching US election. Sands China slumped (-3.9%), along with Trip.com (-3.7%), BYD Electronic (-3.1%), Tencent Holdings (-2.3%), and Meituan (-2.0%).
Source: Trading Economics
