HSI Loses 2 Percent As Asian Stock Markets Slide

Hong Kong and mainland stocks tumbled more than two percent on Monday, in line with a sell-off across Asian markets fuelled by concerns about the global economy.

The Hang Seng Index dropped over 2 percent, or 590 points, to close at 28,523.

On the mainland, the Shanghai Composite Index sank 2 percent, to 3,043 and the Shenzhen Composite Index shed 1.4 percent, to 1,676.

Tokyo was hammered over 3 percent owing to a surge in the yen, which is considered a safe haven in times of turmoil. The Nikkei 225 index lost 650 points, to close at 20,977.

Sydney shed 1.1 percent, Singapore dropped 1.4 percent and Seoul sank 1.9 percent. There was also heavy selling in Wellington, Manila, Taipei and Jakarta.

"Investor pessimism is growing as are recessionary indicators from the bond markets," warned Nick Twidale at Rakuten Securities.

On Monday, a survey by the National Association for Business Economics found US economists were growing increasingly concerned about the US outlook, cutting their growth forecasts and warning that the chances of recession were increasing.

On currency markets, the pound edged up but still faced pressure with Prime Minister Theresa May's political future hanging in the balance as she looks to push her Brexit deal through parliament for a third time.

However, there are reports that members of her own cabinet are plotting to oust her and were planning to confront her at a crucial meeting later on Monday.(AFP)