Hong Kong Stocks Head Into Break With Losses

Hong Kong finished the morning on a down note on Wednesday following a sell-off on Wall Street as traders continue to fret over the impact of the coronavirus on the global economy.

The Hang Seng Index dropped 1 percent, or 239 points, to 24,013 by the break.

The benchmark Shanghai Composite Index was down 0.3 percent to 2,811 points, while the Shenzhen Component Index declined 0.6 percent to 10,367 points at midday.

Sydney was down 0.3 percent. Singapore and Manila each dropped more than two percent, while Jakarta was 1.5 percent off and Seoul eased 0.1 percent. However, Tokyo went into the break slightly higher and Taipei added one percent.

Market observers say investors are closely tracking developments in the coronavirus crisis.

While the deadly disease continues to sweep across the planet, signs that the rate of infections is possibly levelling out and countries preparing to ease some lockdown restrictions have instilled a semblance of optimism this week.

"Signs that the number of new daily coronavirus cases is topping out in Western Europe... is driving expectations that social distancing measures will be lifted soon," said Stephen Innes, at AxiCorp.

"Relaxing of social distancing rules is providing the undercurrent of positivity in the markets."

However, uncertainty about how long the crisis will last and the damage it will inflict on the global economy was keeping traders on edge and hobbling any sustainable rally. (AFP)

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