Hong Kong Stocks Under Pressure After Wall Street Tumble
Hong Kong stocks fell 2.5% to 25,191, hitting a one-month low due to a broad selloff after Wall Street's decline. The Hang Seng is set for a 5% weekly drop, reversing previous gains. Despite Nvidia's strong earnings, traders are avoiding risk assets. Tensions between China and Japan over Taiwan and Beijing's seafood import suspension add pressure. Tech stocks fell over 3%, with JD Health, Tencent Music, SMIC, and China Hongqiao among major losers.
Hong Kong shares tumbled 646 points, or 2.5%, to 25,191 in early Friday trade, extending bearish momentum since last week and hitting an over one-month low amid a broad-based selloff.
Sentiment deteriorated after a sharp overnight slide on Wall Street, as U.S. jobs data failed to clarify the near-term interest-rate outlook.
The Hang Seng is on track for a weekly drop of near 5%, reversing gains from the prior two weeks, with traders retreating from risk assets even after Nvidia’s strong earnings.
Chinese markets also fell to a near one-month low despite PBoC's accommodative stance and potential new property aid measures.
Additional pressure came from escalating tensions between China and Japan over Taiwan, including Beijing’s plan to suspend imports of Japanese seafood.
Tech stocks in Hong Kong slumped over 3%, followed by notable falls in consumer, property, and financial names.
Major losers included JD Health (-7.2%), Tencent Music (-6.0%), SMIC (-5.0%), and China Hongqiao (-3.7%).
