Hong Kong’s stock benchmark falls 1,000 points – the most in six weeks – as sentiment sours on US-China tensions
- Trump warns China to buy as promised in phase one trade deal – or he will tear it up
- Explosive claim accuses China of misleading world on seriousness of virus to hoard medical supplies
Hong Kong stocks suffered their worst fall in six weeks on Monday as US-China tensions flared up over the coronavirus and the US-China trade deal.
The city’s Hang Seng Index fell 4.2 per cent, or 1,029.79 points.
Chinese oil players suffered steep drops due to ongoing turmoil in the world’s oil markets amid weak demand fuelled by the pandemic. PetroChina and Sinopec dropped more than 8 per cent. Chinese airlines also tumbled, with investment legend Warren Buffett adding to their woes by dumping his US airline stocks and predicting over the weekend continued turbulence for the industry. Air China fell nearly 6 per cent.
“US-China tensions will be a long-term negative factor for the Hong Kong market, at least before the November presidential election. But frankly speaking, the impact on the Hang Seng Index is larger than my expectation,” Kenny Wen, wealth management strategist at Everbright Sun Hung Kai, said of Monday’s big fall.
The last 1,000-point fall was on March 23, when the index tumbled 4.9 per cent, or 1,108.94 points.