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Hong Kong Market slides to nearly two-month low

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The Hong Kong share market ended at nearly two-month low on Friday, 02 August 2019, on tracking fall in Wall Street overnight after surprise escalation of the US China trade war and fears that the local economy will continue to deteriorate amid unresolved protests.. At closing bell, the Hang Seng Index dropped 2.35%, or 647.12 points, to 26,918.58, its lowest since 5 June 2019. The Hang Seng China Enterprises Index was down 2.57%, or 272.94 points, to 10,348.63. The benchmark was dragged for a 5.2 per cent loss for the week, while Friday's turnover at HK$114.2 billion, was the highest since June 21.

City market commenced trading with back footing as Investors were rattled by escalating trade tensions, after US President Donald Trump said on Thursday that Washington would apply a 10 per cent tariff on US$300 billion worth of additional Chinese goods starting September 1, adding that the tariff could be raised in stages and go beyond 25 per cent. That came as their latest round of trade talks ended in Shanghai. China's government added to investor unease by threatening unspecified retaliation if Trump's tariff hike goes ahead.

The U. S. leader said Xi was moving too slowly in the negotiations, after being briefed by U. S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on their meeting with Chinese officials this week, which were the first such in-person talks since the June trade truce.

Commodity prices were rocked by the tariff development with global oil prices falling up to 8%. Iron ore also fell more than 3.5% on concerns that further tariffs could lead to a prolonged period of global economic slowdown.

Blue chips fell across the board. HSBC (00005) dipped 1.4% to HK$62.15 ahead of its earnings report on Monday.

HKEX (00388) sank 3.2% to HK$256.2. Tencent (00700) slipped 3.8% to HK$355.8. China Mobile (00941) fell 2.2% to HK$64.9. AIA (01299) slid 2.1% to HK$64.9.

Handset component makers bore the brunt of the new round of tariffs. Sunny Optical (02382) slid 7.8% to HK$84.3. It was the worst blue-chip loser. AAC Technologies(02018) slumped 5.9% to HK$39.9. BYD Electronic (00285) tumbled 8.6% to HK$11.1. FIH Mobile (02038) plunged 8.8% to HK$1.04. Q Technology (01478) dived 8.1% to HK$6.8. FIT Hon Teng (06088) slipped 4.1% to HK$3.06. WH Group (00288), which has a major business segment in the US, dropped 6.7% to HK$7.12.

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

First Published: Fri, August 02 2019. 17:01 IST