Hong Kong stocks skid to one-month low as taper tantrum saps risk appetite
- Hang Seng Index fell for a second day to close at the lowest level since May 17 as tech stocks tumbled; gains in oil stocks softened blow
- Markets jolted by with comments from Fed officials on interest rate outlook and debates on bond tapering
Smartphone maker Xiaomi and other Chinese technology stocks provided the biggest drag on the benchmark gauge. In contrast, PetroChina and China Petroleum & Chemical Corp, known as Sinopec, rallied at least 3 per cent after Brent oil topped US$75 a barrel for the first time since 2019.
Bitcoin tumbled close to US$30,000 after China’s central bank ordered leading commercial lenders and digital payment providers to sever all transactions linked to the cryptocurrency in yet another clampdown on digital assets.
“Headlines and Fed speakers are likely to dominate proceedings, and investors should be prepared for the volatility to continue” in the absence of major calendar events this week, said Jeffrey Halley, an analyst at Oanda.
Traders are keeping a close eye on comments and actions by global central banks, with Fed officials jolting markets after their recent guidance on interest-rate trajectory.