Hong Kong, China stocks stumble as sentiment turns negative on stubborn Covid-19, US-China tensions
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Hong Kong and China stocks stumbled Thursday, with investor sentiment weighed down by the stubbornness of the coronavirus pandemic and ongoing US-China tensions.
The Hang Seng Index rose as much as 1.3 per cent, before closing down 0.7 per cent to 24,710.59. That left it below the psychologically important 25,000 mark for the fifth straight session and snapped a two-day winning steak.
Earlier Hong Kong sentiment was boosted by the US Federal Reserve vowing to do whatever it takes to bolster the world’s largest economy as it slogs through the unrelenting turmoil of the coronavirus. But sentiment in the city soured as a record 150 Covid-19 cases were reported in Hong Kong and overseas investors pulled money out of China stocks through the Stock Connect.
“Worries in China spread to Hong Kong, both of which are seeing outbreaks of Covid-19. Also, with US-China tensions on top of that, some traders just wanted to get their money out,” said Kenny Wen, wealth management strategist at Everbright Sun Hung Kai.
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On the mainland, the Shanghai Composite Index bounced between small gains and small losses, but closed down 0.2 per cent, breaking a three-session winning streak. The CSI 300 of large stocks traded in Shenzhen and Shanghai fell 0.5 per cent.
