Hang Seng Index logs worst week since September as China drains liquidity and volatile US trading spook investors
- Country Garden, Geely Auto and Hengan were among the worst performers, each falling by at least 3.8 per cent
- Markets capped first weekly loss in 2021 as China’s overnight repo rates rose to the highest level in almost six years
The Hang Seng Index slid 0.9 per cent to 28,283.71 at the close on Friday, reversing an intraday gain of as much as 1.5 per cent. The benchmark slumped 3.95 per cent for the week, the worst setback since a 4.99 per cent tumble in the five days ended September 25, according to Bloomberg data.
China’s Shanghai Composite Index lost 0.6 per cent to 3,483.07, bringing the drop in the week to 3.43 per cent, also the most since the end of September.
Country Garden, Geely Automotible and Hengan International were among the biggest decliners among Hang Seng Index members on Friday, each sinking by at least 3.8 per cent.
Other major markets across the Asia-Pacific region all fell, tracking cues from the futures contracts on key US stock benchmarks that flipped into losses in afternoon trading. Fears of wild price swings rattled markets as some online brokerages imposed curbs on speculative trading by day traders that walloped hedge funds.
“The retreat by the US index futures in aftermarket trading has raised doubts among Asian investors about the longevity of the main session rally overnight,” said Jeffrey Halley, a strategist at Oanda. “That has led regional markets to adopt a more cautionary stance into the end of the week, leading to flow driven mixed performances.”