HSI Tumbles As Fresh Lockdowns Add To Jitters

Hong Kong stocks sank more than 1 percent in the morning session on Monday following steep losses on Wall Street as rising infection rates fan concerns about a renewal of economy-hurting lockdowns.

The Hang Seng Index fell 1.6 percent, to 24,159.

On the mainland, the Shanghai Composite Index lost 0.7 percent to 2,958.08 while the Shenzhen Composite Index eased 0.5 percent, to 1,937.

Tokyo, Sydney and Seoul all dropped more than 1 percent, while Singapore dipped 0.6 percent.

Manila dived more than 2 percent, while Taipei and Jakarta were also lower. The losses come after a steep sell-off on Wall Street.

After weeks of lockdown easing across the planet, there are signs of a second wave of infections in key cities in the US, jolting the investor confidence that has helped power a surge in equities from their March trough.

"Equity market consolidation is broadly in line with our thinking that equities were getting ahead of economic fundamentals," said Tai Hui, a strategist at JP Morgan Asset Management.

"The rebound of the infection rate, especially in the US, shows that the road to full recovery is going to be long and that it will require medical solutions, such as a vaccine," he added.

"The situation in the US could also prompt concerns in Europe, as European governments are considering further opening up of borders during the summer holiday season." (AFP)

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