Hang Seng drops 2% to seven-week low amid geopolitical concerns

The Hang Seng plunged by 388 points, or 2.0%, closing at 19,436 on Wednesday, marking its fifth consecutive loss and reaching a seven-week low as all sectors experienced steep declines.

Hang Seng drops 2% to seven-week low amid geopolitical concerns

This session also marked the first time the Hang Seng remained open despite severe weather, with many traders hesitant to make moves. Investor sentiment was dampened as the market shrugged off China’s latest attempt to address its property downturn through tax incentives on home and land transactions. Growing concerns over Sino-US tensions also weighed on the index, significantly as China may tighten exports of rare earth minerals. The tech sector bore the brunt of the losses, with the tech index dropping around 3%, extending its October peak loss to 20%. JD.com and Xiaomi Corp were among the most significant contributors to the decline, reflecting increased geopolitical risks and cautious sentiment surrounding corporate earnings.

US futures edge up as Hang Seng faces notable losses in key stocks

The downturn was somewhat tempered by a slight rise in US futures after inflation data met expectations. Notable losses included Longfor Group (-7.4%), China Resources Land (-4.2%), China Overseas Land (-3.5%), and Semiconductor Manufacturing (-2.4%).