Hong Kong stocks plumb to 3-month lows as Wall Street tech rout dents risk appetite
- Bank stocks fell despite several lenders cutting their deposit rates, after China’s central bank lowered a key policy rate and the mortgage reference rate earlier this week
The Hang Seng Index fell 1.8 per cent to 17,004.97 at the close, the lowest finish since April 23. The Hang Seng Tech Index slid 2 per cent and the Shanghai Composite Index retreated 0.5 per cent.
Technology companies posted sharp falls, with Meituan sliding 5.5 per cent to HK$107.10, Tencent Holdings retreating 3.3 per cent to HK$351.20 and Baidu declining 2.2 per cent to HK$85.80. Gold producer Zijin Mining Group tumbled 5.1 per cent to HK$14.90 on lower bullion prices.
The tumult also swept other major markets in Asia. Japan’s Nikkei 225 was the biggest decliner with a 3.3 per cent loss, while South Korea’s Kospi retreated 1.7 per cent and Australia’s S&P/ASX 200 lost 1.3 per cent.
US stocks saw a meltdown overnight, with the S&P 500 index falling 2.3 per cent for its worst performance since December 2022, after Alphabet reported weak advertising revenues and Tesla’s profits were below consensus estimates.
“Investors are now facing the pressing question: How long will it take for these massive investments by hyper-scalers to start delivering over-the-top results?” said Stephen Innes, managing director at SPI Asset Management in Bangkok. “Patience is becoming the new flag bearer for recent tech stockholders as they wait for these tech bets to pay off.”