Hong Kong and most other Asia-Pacific stocks fall on worries about coronavirus and US-China relations
- Traders lack conviction, taking profits in Hong Kong after a few days of gains
- Casino stocks had a bad day – led by Galaxy Entertainment and MGM China
Hong Kong stocks fell on Tuesday, as traders worried that a possible second wave of coronavirus infections could set back efforts by governments around the globe to lift restrictions on businesses and citizens.
The Hang Seng Index declined 1.5 per cent to 24,245.68, snapping a two-session streak of gains. It was the most the index has fallen in a week, after the benchmark tumbled 4.2 per cent – more than 1,000 points – on May 4 over concerns about growing US-China tension.
While the US-China relationship and the coronavirus are in the back of investors’ minds, overall sentiment has been positive. The Hang Seng has risen on seven of the past 10 sessions. Yet investors lack confidence in long run-ups, leaving the index rangebound as traders profit take after several days of gains.
“There is more and more discussion on the second wave of the virus,” said Alan Li, portfolio manager of Atta Capital. “That gives an excuse for profit taking and deeper adjustment.”
Meanwhile, China stocks were mixed, while markets mostly fell in the rest of the Asia-Pacific region, with investors concerned about what is ahead on US-China relations and the coronavirus, which has killed nearly 300,000 people globally.