HSI Continues To Slide As Mass Protests Return

Hong Kong shares sank in the morning session on Monday, extending a sharp fall at the end of last week, following fresh demonstrations in the city after Beijing proposed a controversial security law.

The Hang Seng Index dropped 1 percent, to 22,701.

On the mainland, the Shanghai Composite Index edged up 0.1 percent to 2,816 while the Shenzhen Composite Index dipped 0.3 percent to 1,746.

Most Asian markets rose as a further opening up of economies from lockdown offset worries over worsening China-US tensions.

Tokyo went into the break more than 1 percent higher, while Sydney and Wellington were up a similar amount. Seoul and Taipei were also higher.

Hong Kong stocks had dived more than 5 percent on Friday after Beijing moved to introduce impose a security law that some investors fear will affect the city's status as a financial centre.

The city also saw clashes and mass protests – the biggest since last year – which battered the local economy for months.

It also turned up tensions between Washington and Beijing, already strained by Trump's barracking of China over its role in the spread of coronavirus and warnings about fresh tariffs.

"One big threat to the recovery in markets is the escalating war of words between the US and China," said Shane Oliver at AMP Capital Investors.

But he added: "The main focus will likely remain on continuing evidence that the number of new Covid-19 cases is slowing in developed countries, progress towards medical solutions, the reopening of economies and signs that economic activity is picking up. (AFP)

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