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Hong Kong Market falls on global economic woes

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Headline indices of the Hong Kong share market dived more than 2% on Monday, 25 March 2019, as fears grow over a global economic slowdown after downbeat economic data from the US and Europe, and a cautious tone from the Federal Reserve. At closing bell, the declined 590.01 points or 2.03% to 28,523.35. The Enterprises Index fell 285.41 points or 2.48% to 11,232.07. Turnover increased to HK$109.3 billion from HK$107.7 billion on Friday.

Hong Kong shares opened sharply lower, taking a negative lead from Wall Street, where stocks dropped on Friday after the closely watched yield curve flashed a warning sign that a recession could be looming.

Stocks around the world were under pressure as investors fled to the safety of bonds after cautious remarks by the U. S. Federal Reserve last week on cooling economy and growing concern about the outlook for the global economy, sparked by soft PMI data from the Eurozone and in March that sent the 10-year treasury yields below the three-month rate for the first time since 2007 embedding interest rate curve inversion. Traditionally, an inverted yield curve - where long-term rates fall below short-term - has signalled an impending recession. .

On US-trade front, Negotiations between the two governments aimed at resolving the trade war will resume this week. Top US officials are due to hold talks with their Chinese counterparts in starting Thursday. A Chinese delegation is scheduled to go to for further talks in early April.

Negotiations had been on hold as the two sides tried to figure out how to overcome disagreements about how the would ensure is abiding by any deal. US concerns about how China goes about getting hold of American technology and trade secrets have also been a sticking point.

Blue chips fell across the board. (00700) sank 3.1% to HK$353.8. (00005) fell 1.6% to HK$63.7. HKEX (00388) shed 2.7% to HK$265.4. (00941) softened 0.7% to HK$81.35. AIA (01299) declined by 2.2% to HK$75.4.

Dividend plays became a safe haven amid uncertainties. (00823) edged up 0.4% to HK$88.4. Power Assets (00006) softened 0.3% to HK$53.75. (00002) dipped 0.9% to HK$90.35.

Handset components providers were mixed ahead of Apple's spring 2019 event scheduled tonight. (02018) soared 4.6% to HK$48.6 becoming the top blue-chip winner. But (02382) dropped 1.7% to HK$91.1. Q Technology (01478) slipped 3.2% to HK$6.61 after it reported 2018 net decline of 97%.

(01088) plunged 6.9% to HK$18.3 after it reported 2018 earnings decline of 8%. It was the worst blue-chip loser. (01171) slipped 4.5% to HK$7.5. China Coal (01898) fell 2.7% to HK$3.25.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, March 25 2019. 14:54 IST