Benchmark Hang Seng Index is submerged up to 13.74 percent on horror day for Asia’s markets.
The Hong Kong stock market has suffered its greatest decrease in a single day in almost three decades in the middle of a panic sale wave caused by the tariff announcements of the president of the United States, Donald Trump.
The Hang Seng reference index closed 13.22 percent on Monday, after falling to 13.74 percent during the day.
It was the strongest fall for Hong Kong’s actions since the index fell by 13.7 percent in a single day during the 1997 Asian financial crisis.
On the worst day for Hong Kong’s actions during the 2007-09 world financial crisis, the index fell by 12.7 percent.
The defeat occurred after Trump doubled his scan tariffs during the night, comparing the measures with the “medicine”, and after China’s announcement last week that he would retaliate with a 34 percent tariff on US imports.
“Friday was a holiday in Hong Kong, so what we are seeing is the reaction to Trump’s tariffs and the reprisals of China. Therefore, it is a double blow,” said Carlos Casanova, a senior economist of UBP in Hong Kong, Al Jazeera.
“To put this in context, the previous retaliation measures went to less than 1 percent of the total imports of China. The magnitude of the latest measures is not precedents,” said Casanova.
“We are in unknown territory.”
Alicia García Herrero, chief economist of Asia Pacific in Natixis, said that the performance of the Hong Kong market offered a more precise caliber of investors’ feeling on the impact of Trump’s tariffs on China’s economy than in the stock markets in the Chinese continent.
“The point is that you cannot trade freely in China. You cannot shorten Chinese, you can do all that in Hong Kong. So obviously reflects what is happening much better than Chinese actions,” García Herrera told Al Jazeera.
Hong Kong’s stocks were, with much, the worst one day in a sad day in general for Asia’s markets, with actions in Japan, South Korea, Taiwan, Australia and Singapore that suffer strong declines.
The global stock markets have thrown billions of dollars in value since Trump announced radical tariffs in almost all countries on Wednesday.
The customs authorities of the United States began to impose a reference rate of 10 percent in imports on Sunday, with more pronounced tariffs between 11 percent and 50 percent in force on Wednesday.
US actions have thrown more than $ 6 billion from Trump’s “Liberation Day”.
It is likely that more pronounced losses will be reopened when Wall Street returns on Monday, with futures linked to the Benchmark S&P500 and Nasdaq-100 heavy with technology.
