Ukraine tensions, Covid-19 lockdown fears hit Hong Kong stocks as global risk appetite wanes, crude oil rallies

Hang Seng suffered the biggest drop in two weeks as Covid-19 lockdown worries, Russia-Ukraine tensions zapped global risk appetite

Alibaba slid on first day of trading after announcing the date for its next quarterly earnings release while CNOOC led oil stocks higher on supply outlook

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An investor looks at stock price movements on a screen at a securities company in Beijing in May 2019. Photo: AFP

Published: 10:33am, 14 Feb 2022Updated: 4:38pm, 14 Feb 2022

Hong Kong stocks fell by the most in two weeks on global risk aversion as the fifth wave of Covid-19 infections in the city worsened and the US warned Russia could invade Ukraine at any time in the coming week. Crude oil rally aided producers.

The Hang Seng Index slipped 1.4 per cent to 24,556.57 at the close of Monday trading, a second day of loss. The Tech Index retreated 1.7 per cent while China’s Shanghai Composite Index declined 1 per cent.

Alibaba Group Holding, the owner of this newspaper, lost 3 per cent to HK$118.70 as the e-commerce group prepares to report its third-quarter earnings on February 24. Meituan tumbled 3.6 per cent and Tencent Holdings slid 1.1 per cent. NetEase and JD.com sank by more than 3 per cent.

The US has warned that Russia could attack Ukraine at any time before the end of the Winter Olympics, which concludes in Beijing on February 20. The tensions sparked concerns about supply, fanning a rally in crude to US$93.83 a barrel, the highest since September 2014.

PetroChina gained 2.7 per cent to reach the highest since September 2019, while CNOOC rose 0.1 per cent.

Despite recent gains, the Hang Seng “remains plagued by Russia-Ukraine tensions this week and is expected to fluctuate,” Eric Chong, research manager at Chief Group in Hong Kong, said in a note on Monday.