Fri, February 07, 2025

Stock markets and political crisis in Hong Kong

Tensions and stock markets

On November 11, the stock markets declined due to the problems connected with the political crisis.

Demonstrations started a long time ago. However, several incidents that happened on Monday increased the level of violence. On Monday, a traffic officer shot a young protester. According to hospital authorities, this protester is in critical condition.

The same day another brutal incident highlighted the risks connected to security. A group of protesters used a flammable liquid to set a man on fire.

All of the factors combined affected the market sentiment, as the ongoing political crisis is a serious challenge for the stock markets. Investors will try to find the countries which are safer such as Japan.

Another problem for Hong Kong is that its economy is slowing down. According to the results from the third quarter of 2019, Hong Kong’s economy is in recession. The economy decreased by 3.2%. For instance, in the second quarter, the economy contracted only by 0.5%.

Economists are now predicting that in 2019, Hong Kong won’t be able to meet the target of between 0% to 1% growth.

Asian stock marketsStocks on Monday

On Monday, stocks in Hong Kong suffered their worst day in more than three months. The Hang Seng Index fell by more than 2.6%. It was the worst single-day decline since the beginning of August.

Let’s have a look at how the real estate stocks performed on Monday. Several famous companies such as Swire Pacific, Wharf Real Estate, Sun Hung had a bad day. Real estate stocks decreased by more than 4%.

 China’s Shanghai Composite decreased by 1.8%. Meanwhile, South Korea’s Kospi index decreased by 0.6%. Japan’s Nikkei 225 dropped 0.3%.  

      • Interested in Trading Hang Seng Index or Nikkei 225? Read WiBestBroker’s comprehensive review on Trade360.

Hong Kong is one of the most important financial hubs in the world. Protracted political crisis may undermine its role as uncertainty is harmful to the stock markets.  

YOU MAY ALSO LIKE

Число заявок на пособие по безработице в США сократилось на 2 000, что свидетельствует о стабильности рынка труда в условиях высоких ставок, а дальнейшие действия ФРС будут иметь решающее значение для экономической стабильности.

Quick Overview Unemployment Claims Dip: Jobless claims fell by 2,000 to 231,000,

Стерлинг достиг отметки $1,32: рост, риски и перспективы

Quick Look Sterling’s Surge: The British pound has surged to a 2.5-year

Доу Джонс вырос на 243 пункта, установив новый рекорд на отметке 41 335,05

Quick Overview Dow Jones Hits Record: The DJIA rose by 243.63 points,

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

BROKER NEWS