The Hong Kong stock market has experienced a downturn over the past two sessions, dropping by more than 860 points, equating to a 2.8 percent decline. As of now, the Hang Seng Index is positioned just below the 25,770-point mark and is anticipated to face further downward pressure on Wednesday.
Globally, the outlook for Asian markets remains bleak, primarily due to ongoing concerns surrounding the conflict in the Middle East. While oil stocks are forecasted to perform positively, the broader market sentiment is negative, influenced by declines in both European and U.S. markets.
On Tuesday, the Hang Seng Index suffered a significant drop, primarily driven by poor performances from property stocks and technology firms. The index closed down by 291.77 points, or 1.12 percent, finishing at 25,768.08 after fluctuating between 25,727.00 and 26,218.93 during the day’s trading.
A closer look at individual performances reveals that Alibaba Group saw a decrease of 1.17 percent, while Alibaba Health Information experienced a substantial decline of 3.91 percent. Other notable losses included ANTA Sports (down 2.89 percent), China Life Insurance (down 1.51 percent), and China Mengniu Dairy (down 1.80 percent). On the flip side, some stocks managed to gain, with CNOOC soaring by 3.22 percent and ENN Energy surging 5.12 percent.
The influence of the U.S. markets was palpable, as Wall Street’s major averages opened lower and remained in the red throughout the trading day, although they closed at their best levels. The Dow dipped by 403.51 points, a 0.83 percent drop, ending at 48,501.27. The NASDAQ fell by 232.17 points, or 1.02 percent, to finish at 22,516.69, and the S&P 500 declined by 64.99 points, or 0.94 percent, closing at 6,816.63.
Investor fear on Wall Street primarily stemmed from the ongoing conflict in the Middle East. U.S. President Donald Trump suggested that the conflict might persist for four to five weeks, although it could extend much longer. The turmoil has led to soaring crude oil prices, raising concerns about potential inflation as prices continue to rise. The situation was exacerbated following attacks on several oil refineries, including Saudi Aramco’s facility.
Crude oil prices surged again on Tuesday, following a spike after Iran closed the Strait of Hormuz. West Texas Intermediate crude for April delivery increased by $3.35 or 4.7 percent, reaching $74.58 per barrel.
Looking ahead, Hong Kong is set to release January retail sales data later today, following a 6.6 percent year-on-year increase reported in December.
