Zürcher Nachrichten - Hong Kong hammered again as Asia stocks fall, oil retreats

EUR -
AED 3.804756
AFN 76.006636
ALL 99.235032
AMD 408.126271
ANG 1.859973
AOA 946.272499
ARS 1089.969388
AUD 1.646411
AWG 1.865866
AZN 1.755868
BAM 1.955447
BBD 2.083734
BDT 125.387348
BGN 1.953884
BHD 0.390431
BIF 3055.362787
BMD 1.035873
BND 1.399254
BOB 7.131712
BRL 5.972637
BSD 1.032019
BTN 89.483834
BWP 14.304485
BYN 3.377097
BYR 20303.108181
BZD 2.073036
CAD 1.481039
CDF 2975.026922
CHF 0.945852
CLF 0.025956
CLP 996.042943
CNY 7.57191
CNH 7.577301
COP 4286.441921
CRC 525.107672
CUC 1.035873
CUP 27.450631
CVE 110.579528
CZK 25.100186
DJF 183.777687
DKK 7.458393
DOP 64.482817
DZD 140.312329
EGP 52.258956
ERN 15.538093
ETB 130.778728
FJD 2.415396
FKP 0.853131
GBP 0.832412
GEL 2.89042
GGP 0.853131
GHS 16.066424
GIP 0.853131
GMD 74.582428
GNF 8965.480258
GTQ 7.97256
GYD 216.450897
HKD 8.071006
HNL 26.60152
HRK 7.644274
HTG 135.166234
HUF 403.05587
IDR 16957.238822
ILS 3.721233
IMP 0.853131
INR 89.96043
IQD 1356.993455
IRR 43610.247626
ISK 146.596793
JEP 0.853131
JMD 162.49986
JOD 0.734848
JPY 159.084694
KES 133.783164
KGS 90.587421
KHR 4159.029568
KMF 492.195318
KPW 932.285695
KRW 1504.604788
KWD 0.319723
KYD 0.860045
KZT 522.275649
LAK 22504.338033
LBP 92762.414902
LKR 306.634606
LRD 204.636037
LSL 19.184046
LTL 3.058663
LVL 0.626589
LYD 5.101658
MAD 10.374298
MDL 19.42749
MGA 4878.961518
MKD 61.518886
MMK 3364.474663
MNT 3519.896111
MOP 8.283504
MRU 41.5903
MUR 48.519778
MVR 15.9625
MWK 1798.275051
MXN 21.313095
MYR 4.631358
MZN 66.202477
NAD 19.18436
NGN 1556.284681
NIO 38.068726
NOK 11.608799
NPR 143.174826
NZD 1.832029
OMR 0.39882
PAB 1.032014
PEN 3.844383
PGK 4.15279
PHP 60.261386
PKR 289.008423
PLN 4.174196
PYG 8135.569553
QAR 3.7711
RON 4.97695
RSD 117.086413
RUB 99.982355
RWF 1450.222013
SAR 3.884585
SBD 8.749981
SCR 15.587773
SDG 622.559323
SEK 11.251874
SGD 1.402712
SHP 0.853131
SLE 23.62116
SLL 21721.735989
SOS 592.003114
SRD 36.416085
STD 21440.476915
SVC 9.030369
SYP 13468.418993
SZL 19.18457
THB 35.381794
TJS 11.248968
TMT 3.635914
TND 3.303917
TOP 2.42612
TRY 37.349593
TTD 7.004735
TWD 34.033087
TZS 2680.34417
UAH 43.041132
UGX 3792.314907
USD 1.035873
UYU 44.831901
UZS 13455.988081
VES 63.137923
VND 26505.396968
VUV 122.980907
WST 2.901301
XAF 655.841686
XAG 0.032567
XAU 0.000359
XCD 2.799498
XDR 0.790161
XOF 658.294366
XPF 119.331742
YER 257.88025
ZAR 19.18053
ZMK 9324.098016
ZMW 28.870924
ZWL 333.55064
  • RBGPF

    1.8700

    66.72

    +2.8%

  • CMSD

    0.0700

    23.89

    +0.29%

  • BCC

    0.0600

    123.32

    +0.05%

  • CMSC

    0.0450

    23.46

    +0.19%

  • JRI

    0.0300

    12.87

    +0.23%

  • RYCEF

    0.0800

    7.69

    +1.04%

  • BCE

    0.3700

    22.88

    +1.62%

  • SCS

    0.2900

    11.98

    +2.42%

  • RELX

    0.7700

    51.33

    +1.5%

  • NGG

    -0.0100

    61.48

    -0.02%

  • VOD

    -0.0700

    8.5

    -0.82%

  • GSK

    -0.4000

    36.07

    -1.11%

  • AZN

    0.0700

    72.73

    +0.1%

  • BTI

    0.2200

    42.52

    +0.52%

  • RIO

    -0.6000

    61.65

    -0.97%

  • BP

    0.1300

    34.55

    +0.38%

Hong Kong hammered again as Asia stocks fall, oil retreats
Hong Kong hammered again as Asia stocks fall, oil retreats

Hong Kong hammered again as Asia stocks fall, oil retreats

Asian markets fell Tuesday, with Hong Kong tech firms leading another collapse in the city's Hang Seng Index following the Covid-19 shutdown of tech hub Shenzhen and worries over Russia's military outreach to China.

Text size:

Concerns about China's economic outlook saw oil prices suffer fresh selling pressure, with WTI falling back below $100 a week after it hit a 14-year high on the back of Vladimir Putin's invasion of Ukraine.

Hopes for progress in talks to bring an end to the war in eastern Europe were also putting pressure on the black gold.

Global markets have been in a spiral since Russian troops marched into the neighbouring country, leading international powers to impose crippling sanctions on the country and numerous companies to pull out.

The measures have fanned concerns about the supply of commodities from the region, particularly oil, sending prices through the roof and ramping up fears that already high inflation would run out of control and shoot a hole through a fragile economic recovery.

Among the hardest-hit markets has been Hong Kong, which was already under pressure from China's regulatory crackdown on technology firms as part of the government's move to tighten its grip on the economy.

News that US authorities were also looking to crack the whip over Chinese firms listed in New York sparked a rout last week. And the selling continued Monday after news emerged of the Shenzhen lockdown.

The Hang Seng Index dived Monday as the Hang Seng Tech Index was pummelled 11 percent after China said it would lock down Shenzhen to contain a Covid-19 outbreak.

Another trouncing came later in the day in New York, exacerbated by news that Putin had asked China for military assistance in its battle in Ukraine.

Traders are fretting that Chinese companies could face sanctions or delisting if Beijing reacts positively to Russia's plea.

A "material rerating for China tech may need to see a shift in regulatory tone", Marvin Chen, a strategist at Bloomberg Intelligence, said, adding that interplay between Moscow and Beijing would be closely followed.

"Delisting fears and renewed Covid pressures delivered a double-whammy to the few bulls left. There's wholesale liquidation and even optimists think the space is just too hard right now."

And Sharif Farha, at Safehouse Capital, added: "The issue right now is the lack of a positive catalyst in China with regulatory noise continuing to create an overhang" on US-listed Chinese firms.

"In the short term we think overall Chinese equities will continue to face selling pressure. Longer term, the strong will survive and likely get stronger, bigger."

The Hang Seng Index dived more than six percent on Tuesday as afternoon selling wiped out a minor bounce from data out of China suggesting the economy started 2022 on a positive note.

Shanghai was also in trouble, losing five, while Sydney, Seoul, Mumbai, Taipei, Jakarta, Bangkok and Wellington were also well down, though Tokyo, Singapore and Manila rose.

While data out of China beat forecasts, unemployment jumped and the shutdown in Shenzhen along with a surge in Covid-19 cases across the country has ramped up concerns the giant economy will see another growth slowdown.

They could also lead to more supply chain snarls, which can add to inflation.

That, in turn, has seen traders cut their expectations for demand from the world's biggest oil importer, with WTI dropping to as low as $96.70, well down from the 14-year peak of $130.50 touched last Monday.

Brent was also sharply down at $100.05, from its peak last week of $139.13.

The selling on oil markets was compounded by indications that moves were progressing on bringing the Ukraine war to an end.

Moscow said it made headway Monday in peace talks ahead of the latest round of negotiations, while US-China talks were also said to be broadly positive.

"Whilst they're yet to produce any solid results, (Russia-Ukraine talks) are deemed as a step in the right direction and hope remains that a resolution can be found," said Matthew Simpson at StoneX Financial.

"And those hopes have removed a key pillar of support for commodity prices."

He added that talk last week of $200 a barrel and suggestions this week of $50 were both "far-fetched" but tipped crude to hover around $90-$110.

Meanwhile, traders are also anxiously awaiting the Federal Reserve's policy meeting with most tipping a quarter-point interest rate hike as officials try to rein in prices while also being mindful of the shaky economic recovery.

- Key figures around 0710 GMT -

Hong Kong - Hang Seng Index: DOWN 6.2 percent at 18,320.53

Tokyo - Nikkei 225: UP 0.2 percent at 25,346.48 (close)

Shanghai - Composite: DOWN 5.0 percent at 3,063.97 (close)

West Texas Intermediate: DOWN 5.5 percent at $97.32 per barrel

Brent North Sea crude: DOWN 5.7 percent at $100.84

Dollar/yen: UP at 118.36 yen from 118.19 yen on Monday

Euro/dollar: UP at $1.0971 from $1.0949

Pound/dollar: UP at $1.3029 from $1.3003

Euro/pound: UP at 84.21 pence from 84.18 pence

New York - Dow: FLAT at 32,945.24 (close)

London - FTSE 100: UP 0.6 percent at 7,196.25 (close)

T.Furrer--NZN