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Hong Kong Market tanks 3.5%

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Headline indices of the Hong Kong share market tumbled on Thursday, 11 October 2018, joining a global equities rout on tracking overnight dive in European and US markets overnight amid growing concerns about rising US interest rates, ongoing trade friction between the U. S. and China, and worries over global growth. The stumbled 926.70 points or 3.54% to 25,266.37. The Enterprises Index dropped 350.19 points or 3.35% to 10,092.52. The sub-index of the Hang Seng tracking the Commerce & Industry sector fell 4.16%, properties sector dropped 3.5%, financial sector shed 3.4%, and Utilities sector slipped 1.4%.

Wall Street tumbled on Wednesday, with the and the Dow marking their biggest daily declines since Feb. 8 as markets were spooked by the prospect of rising interest rates. The fall was driven by a rise in U. S. long-dated Treasury yields, which reinforced expectations of several interest rate hikes over the next 12 months and prompted investors to reassess equity valuations. Over the past few months, an intensifying trade war between the and has also hit risk assets on worries about global growth.

A move by over the weekend to inject more liquidity into the system has failed to comfort investors worried about the potential for US Donald Trump's anti-rhetoric to widen beyond a trade spat into a cold war. Weak Chinese and a stronger US dollar were also offsetting Beijing's efforts to stabilise the by loosening lending requirements, cutting taxes and selling more domestic bonds, traders warned.

China's central on Sunday continued its loosening stance, cutting the amount of reserves the country's domestic banks must hold by 100 basis points, its fourth reduction in just over a year. Analysts said the move would inject about 750 billion yuan into the local

Shares of HK listed China lenders were softer on weaker RMB. Renminbi weakened to 6.9098 against the US dollar, depreciating to the lowest level since 15 March 2017. (01288) and (01398) shed 3.8% to HK$3.52 and HK$5.12. BOC (03988) slipped 3% to HK$3.24.

Shares of HK listed Chinese developers were also lower. (00813) sank 5.4% to HK$14.9. CR Land (01109) fell 4.3% to HK$24.35. (02007) tumbled 6.8% to HK$8.01.

OFFSHORE MARKET NEWS, US tumbled on Wednesday. Rising bond yields and lingering worries over the trade dispute between the US and China were the main factors driving down share prices. Many investors sold shares in because higher US long-term interest rates raise companies' borrowing costs, eroding their corporate earnings. The plunged 831.83 points or 3.2% to 25,598.74, the Nasdaq plummeted 315.97 points or 4.1% to 7,422.05 and the tumbled 94.66 points or 3.3% to 2,785.68.

The major European markets ended lower on Wednesday. The U. K.'s Index slumped by 1.3%, while the French Index and the German DAX Index plummeted by 2.1% and 2.2%, respectively.

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

First Published: Thu, October 11 2018. 14:09 IST