China, Hong Kong stocks fall at start of packed week that includes US elections, Fed meeting
- Traders face busy week of market-moving news, including US elections and Federal Reserve meeting.
Hong Kong and mainland China markets fell on Monday as optimism over US-China relations retreated in a busy week for investors that started with President Xi Jinping vowing to boost imports, and will move on to high-stakes US midterm elections and a meeting of the US Federal Reserve.
The ongoing trade war between the world’s two largest economies continued to weigh on sentiments after White House economic adviser Larry Kudlow denied that the US has drawn up proposed plans with China in an interview with CNBC, lowering expectations of a quick deal.
Hong Kong’s Hang Seng Index lost almost 2.1 per cent, or 551.96 points, to 25,934.39, while the Hang Seng China Enterprises Index was down 1.3 per cent, or 142.85 points, to 10,544.92.
On the mainland, the Shanghai Composite Index slipped 0.41 per cent, or 11.04 points, to 2,665.43, reversing four days of gains. The CSI 300 Index of large caps fell 0.8 per cent, or 27.41 points, to 3,262.84, while the ChiNext gauge of small caps fluctuated throughout the day before edging up a mere 0.04 per cent, or 0.6 points, to 1,348.88.
Optimism disappeared after Hong Kong’s benchmark last week saw its biggest weekly gain in over three years and markets jumped worldwide on news US President Donald Trump and Xi had agreed to a “meeting plus dinner” appointment this month, raising hopes that a deal to end the US-China trade war may be in sight.