HSI Falls As Traders Fret Over Global Economy

Hong Kong stocks fell more than 1 percent on Thursday morning, in line with a sell-off across Asia and in New York after the head of the Federal Reserve warned about the long-term economic damage caused by coronavirus.

The Hang Seng Index lost 1.1 percent, to 23,912.

Across the border, the Shanghai Composite Index dropped 0.5 percent to 2,884, while the Shenzhen Composite Index shed 0.2 percent to 1,819.

Tokyo went into the break 0.6 percent lower, while Sydney, Seoul, Singapore, Taipei and Manila all lost 1 percent or more.

Wellington dipped 0.2 percent while Jakarta was off 0.4 percent.

The downbeat mood in equity markets was mirrored in foreign exchanges, where high-yielding, riskier currencies were down against the US dollar, with the Australian dollar losing more than 1 percent and South African rand losing almost as much.

Oil prices were stable, however, as the lifting of quarantine measures fuel hopes for a pick-up in demand, while output cuts by major producers has helped ease a supply and storage crisis.

"As economies carry on with restarting activity – albeit at a measured pace – and Opec shows a more significant commitment to supply discipline, oil prices will show further upside momentum," said AxiCorp's Stephen Innes.

"But momentum will happen in fits and starts until there is at minimum some therapeutic solution for the virus." (AFP)

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