hong kong stocks slump to march low as federal reserve rate-hike stokes recession worries while fosun slides on rating cut

Hong Kong stocks fell to a six-month low on concern the Federal Reserve will push ahead with its fifth interest-rate increase this year to control inflation at the risk of pushing the global economy into a recession. Analysts expected China’s commercial banks to keep the loan-prime rates unchanged this month.

The Hang Seng Index dropped 1 per cent to 18,580.87 at the noon break, heading for its lowest close since March 15. The Tech Index slumped 2 per cent, while the Shanghai Composite Index lost 0.2 per cent.

Alibaba Group Holding slumped 3.4 per cent to HK$83.85, while Tencent Holdings lost 0.9 per cent to HK$290.60. Other big losers include WuXi Biologics, which tumbled 5.1 per cent to HK$49.20, and developer Country Garden, which retreated 5 per cent to HK$2.30.

The Fed will lift benchmark borrowing costs by at least 75 basis points at its policy meeting this week, according to Fed funds futures, with some traders pricing a full percentage point increase. Policymakers have so far raised a total of 225 basis points in the past four open-market committee meetings this year.

“Market sentiment is now clearly under pressure as worries are growing among investors that the Fed will be heavy-handed in raising interest rates,” said Liu Gu, an analyst at Guotai Junan Securities in Hong Kong. “Hong Kong stocks will have to follow the weak pattern on overseas markets.”

Two-year US government bond yields are at about 3.87 per cent, the highest level since 2007, while 10-year notes fetched about 3.45 per cent, steepening the curve inversion which typically signals an imminent recession. US equities fell last week in their worst performance since June, with the S&P 500 index losing almost 5 per cent.

China’s commercial lenders will probably leave both the one-year and the five-year loan primate rates unchanged for September on Tuesday. The one-year rate will stay at 3.65 per cent and the five-year rate will be at 4.30 per cent, according to the estimate of economists tracked by Bloomberg.

Elsewhere, Fosun International added 0.4 per cent to HK$4.98, reversing a loss of as much as 2.6 per cent, after the diversified group’s credit rating was cut to BB- by S&P Global Ratings amid concerns about its finances. Its unit Fosun Pharma declined 1.5 per cent to HK$20.10, and Fosun Tourism weakened 0.1 per cent to HK$7.11.

Limiting losses, China lifted a two-week lockdown of Chengdu, the southwest city of 21 million in Sichuan province starting Monday, allowing residents to leave homes and return to work. They are still required to take nucleic acid tests once a week, among other rules imposed by the local government.

Five companies started trading on the mainland’s exchanges on Monday, with two rising and three declining. Dabond Technology, a producer of integrated circuit packaging materials, jumped 66 per cent to 76.35 yuan in Shanghai as the best performer, while Zhejiang Power New Energy, which makes chemicals for lithium batteries, tumbled 19 per cent to 41.86 yuan for the biggest decline.

Other major markets in the region were generally weak, as South Korea’s Kospi slid 1 per cent and Australia’s benchmark slipped 0.1 per cent. Japan’s market is shut for a public holiday.

TECH NEWS RELATED

US sides against Google in consequential social media case

Credit: Unsplash/CC0 Public Domain The Biden administration told the U.S. Supreme Court that social media companies in some cases can be held liable for promoting harmful speech, partially siding with a family seeking to sue Alphabet Inc.’s Google over a terrorist attack. In a Supreme Court filing on Wednesday ...

View more: US sides against Google in consequential social media case

Build-to -rent is seen as affordable, but it’s yet to help those most in need

Australians desperately need more affordable homes, particularly homes for rent. The prospect of home ownership is rapidly receding for many people, especially younger generations (as the chart below shows). More people than ever are being forced into a tight rental market. Making things worse, many traditional providers of residential ...

View more: Build-to -rent is seen as affordable, but it’s yet to help those most in need

Experts weigh in on what the recent Twitter changes could mean for social media, news distribution

Credit: Pixabay/CC0 Public Domain In light of Twitter’s new ownership, University of California, Davis, experts weigh in on what the recent changes could mean for social media, news distribution and communications in general. Cuihua (Cindy) Shen is a professor of communication at UC Davis. Her research and teaching interests ...

View more: Experts weigh in on what the recent Twitter changes could mean for social media, news distribution

Logitech G Cloud Handheld Gaming Console review: A great option in a niche market

Cloud gaming is coming, and its promise is that it’ll allow you to play console-quality games anywhere, as long as you have a decent internet connection. For most gamers, that means being able to play on a smartphone on the go. But as cloud gaming has become increasingly popular, so ...

View more: Logitech G Cloud Handheld Gaming Console review: A great option in a niche market

The potentially adverse impact of Twitter 2.0 on scientific and research communication

Credit: Unsplash/CC0 Public Domain In just over a month after the change in Twitter leadership, there have been significant changes to the social media platform, in its new “Twitter 2.0.” version. For researchers who use Twitter as a primary source of data, including many of the computer scientists at ...

View more: The potentially adverse impact of Twitter 2.0 on scientific and research communication

Why sports sponsorship is unlikely to save cryptocurrency firms from 'crypto winter'

Los Angeles’ Crypto.com Arena – home to the LA Lakers basketball team – was known as Staples Center when sponsored by the US office supplies retailer. Credit: Pamela Brick / Shutterstock If you have been watching the Fifa World Cup in Qatar closely, you will have noticed the advertising ...

View more: Why sports sponsorship is unlikely to save cryptocurrency firms from 'crypto winter'

As global digital divide grows, China shows how to achieve more with less

Today, the economic outlook appears challenging at best. A looming global recession, war in Europe, the climate emergency and sustained threats to supply chain security have turned things upside down. In particular, productivity growth, typically spurred by increased innovation, has stagnated in recent years. Equally of concern is that ...

View more: As global digital divide grows, China shows how to achieve more with less

China’s Gen-Z consumers prep for flurry of ‘revenge’ spending, with pent-up demand set to benefit personal-care brands

Makers of personal-care products will be top beneficiaries of China’s post-Covid reopening thanks to pent-up demand, according to a joint study by global consultancy Bain & Company and market research firm Kantar Worldpanel. Members of Gen Z, those born in the mid to late 1990s, will increase purchases of ...

View more: China’s Gen-Z consumers prep for flurry of ‘revenge’ spending, with pent-up demand set to benefit personal-care brands

Chinese electric-car maker BYD eyes production in Europe as it widens lead over Tesla as world’s largest EV builder

Bad news for Hong Kong currency speculators as Barclays sees peg status quo while yuan shortcomings hinder repeg

New materials for the computer of the future

TikTok hit by US lawsuits over child safety, security fears

Huge Wirecard fraud trial opens in Germany

Ramesh 'Sunny' Balwani gets prison time for Theranos fraud

Surveillance, hacking: whistleblower recalls Wirecard nightmare

GAC’s ride-hailing firm Ruqi picks banks for a Hong Kong stock sale, sources say

Zero-Covid: reopening playbook turns Chinese stocks into one-way bet for investment banks, value trap for others

Why what comes after China abandons ‘zero-Covid’ policy is worryingly unclear

Sunshine’s US$824 million IPO a boost for Hong Kong even as Beijing insurer prices stock offering at lower end of range

Mickey and Donald roll out the red carpet as Shanghai Disneyland reopens under China’s easier Covid-19 rules

OTHER TECH NEWS

Top Car News Car News