Hong Kong's Hang Seng index drops nearly 2% on tech rout

Hong Kong shares fell on Monday after the U.S. Senate passed a $1.9 trillion stimulus bill, raising inflation worries, while a low economic growth target in China prompted fears of tighter policy to rein in lofty valuations. ** About 4.91 billion Hang Seng index shares were traded, roughly 164.4% of the market's 30-day moving average of 2.98 billion shares a day.

Reuters | Hong Kong | Updated: 08-03-2021 14:25 IST | Created: 08-03-2021 14:18 IST
Hong Kong's Hang Seng index drops nearly 2% on tech rout
Representative image. Image Credit: ANI

Hong Kong shares fell on Monday after the U.S. Senate passed a $1.9 trillion stimulus bill, raising inflation worries, while a low economic growth target in China prompted fears of tighter policy to rein in lofty valuations. ** At the close of trade, the Hang Seng index was down 557.46 points, or 1.92%, at 28,540.83. The Hang Seng China Enterprises index fell 2.46% to 11,014.79. ** Tech shares slumped 6.4% and the IT sector fell 5.91%, dragging the broader index lower. ** Those falls outweighed gains in energy shares, which rose 1.6% on higher oil prices, while the financial sector ended 0.29% higher and the property sector rose 0.26%. ** China on Friday set a modest annual economic growth target, at above 6%, which was significantly below the consensus of analysts, who expect growth could beat 8% this year. ** While some analysts saw the conservative target as an indication policymaker could take action to curb asset bubbles, others took a more sanguine view. ** "Our outlook for further cyclical upside remains intact as global re-opening is being helped by vaccination," Wendy Liu, head of China Strategy at UBS Global Research, said in a note. ** "We believe the current phase of consolidation may conclude when the so-called core growth companies ... (test) their respective 100-day or 200-day moving averages and their growth prospects are re-confirmed during the upcoming results season," she said. ** China's main Shanghai Composite index closed down 2.3% at 3,421.41, while the blue-chip CSI300 index ended down 3.47%. ** The yuan was quoted at 6.5209 per U.S. dollar at 08:08 GMT, 0.38% weaker than the previous close of 6.4965. ** About 4.91 billion Hang Seng index shares were traded, roughly 164.4% of the market's 30-day moving average of 2.98 billion shares a day.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

Viral variants and vaccine nationalism pose two-pronged threat to Covid victory

... ...

Tracking Fintech during COVID-19: Harnessing power of technology

Its abundantly clear now that as fintech cements its place in the financial sector, accelerated further by the COVID-19 pandemic, it could open the sector to new possibilities by harnessing the power of technology to deliver financial ...

Tectonic turns: How technology shaped healthcare over the decades

Tracing an episodic evolution, with technology at the interface of human and his health....

World Water Day sees crises of inequality in countries both rich and poor

... ...

Videos

Latest News

Eleven dead, 98 injured after train derails in Egypt

Eleven people were killed and 98 injured on Sunday in a train accident in Egypts Qalioubia province north of Cairo, the health ministry said in a statement.The train was heading from Cairo to the Nile Delta city of Mansoura when four carria...

French president foresees some summer tourists in Paris

French President Emmanuel Macron says he foresees at least some tourists returning to Paris this summer if they have gotten vaccinated or have proof of testing negative for the coronavirus as France moves to progressively lift infection-con...

Cape Town wildfire forces evacuation of university students

A wildfire raging on the slopes of Cape Towns Table Mountain forced the evacuation of students from the University of Cape Town on Sunday.Wind spread the blaze across dry brush and burned part of the Rhodes Memorial Restaurant, according to...

Soccer-Anger as European breakaway threat re-emerges hours before UEFA vote

European football closed ranks on Sunday, threatening to ban any clubs that join a breakaway competition after the spectre of a European Super League re-emerged on the eve of a vote on Champions League reforms. UEFA said on Sunday that they...

Give Feedback