HSI Slides Over New Coronavirus Cases In Beijing

Hong Kong stocks started on Monday on the back foot as investors fret over signs of a fresh wave of virus infections on the mainland and the US that has fanned concerns about the economic rebound.

The Hang Seng Index fell 1.3 percent, to 23,991.

On the mainland, the Shanghai Composite Index slipped 0.4 percent, to 2,908 and the Shenzhen Composite Index was flat, at 1,870.

Fears of a second wave of the coronavirus in Beijing also prompted investors to sell currencies sensitive to risk.

The yuan dipped in offshore trade while the British pound declined against the greenback due to concerns trade negotiations between Britain and the European Union are not making enough progress.

The Australian and New Zealand dollars fell against their US counterpart.

Traders are also monitoring a spike in coronavirus cases in the United States, which raises concern that another outbreak could once again slow the global economy.

"There's talk that hedge funds and other short-term speculators came into the market early to sell the Australian dollar because of the new infections in Beijing," said Yukio Ishizuki, foreign exchange strategist at Daiwa Securities in Tokyo.

"Hopefully this will not be a big outbreak, and this downward move will not last long." (AFP, Reuters)