HSI Tumbles 2.3 Percent As Asian Markets Retreat

Hong Kong shares tumbled on Thursday in line with a global retreat following a recent rally, while investors were also spooked by Federal Reserve warnings over the US recovery and signs of a second wave of infections in parts of the country.

The Hang Seng Index dived 2.3 percent, to 24,480.

On the mainland, the Shanghai Composite Index fell 0.8 percent, to 2,920 and the Shenzhen Composite Index dropped 0.5 percent, to 1,865.

Tokyo stocks ended down 2.8 percent, while Sydney and Singapore each fell around 3 percent. Seoul was 0.9 percent lower.

There were also big losses in Wellington, Taipei, Mumbai, Jakarta and Bangkok.

Attention is now on the release later in the day of US unemployment claims data, which will give a fresh snapshot of the economy following a blockbuster reading for May that showed a shock jump in jobs creation.

But Beata Caranci, chief economist at TD Bank, warned: "We have to have a little bit of caution" after the May report.

"Those businesses that reopened – even at reduced capacity – are naturally going to have demand for workers. The question is: do you get back to where you were before? And I think that's pretty far-fetched. There's a significant amount of people still displaced."

Oil prices tumbled around 4 percent after official data showed US supplies saw a jump of 5.7 million barrels last week, reviving demand worries despite the easing of lockdowns. (AFP)