Hong Kong stocks drop sharply

On Thursday, Hong Kong stocks dipped sharply, thus catching up with huge regional sell-off, as the Asian market reopened right after an extended Lunar New Year holiday.

The benchmark Hang Seng Index dived to 18526.03, losing 4%. The Hang Seng China Enterprises Index of Chinese companies dropped to 7665.74, lacking 4.8%. By the way financial markets of mainland China will open once again on Monday.

Meanwhile, South Korea’s Kospi sagged 2.9%, while Australian S&P ASX 200 managed to grow 0.5%.

Overnight, the Fed’s chairwoman Janet Yellen pointed out to certain risks, which could delay the central bank’s rate hike initiative. In American low interest rates powered gains in equity markets all over the world.

The S&P 500 decreased, as most market participants remained hesitant. In general, this year financial markets have faced enormous swings.

A market strategist of brokerage IG, Bernard Aw told that investors haven’t seen anything rosy in the eyes of the Fed’s chairwoman. Currently market volatility remains the number one consideration in the Fed’s plans to increase rates.

Hong Kong financial stocks dropped 4.5%. This year the banking sector appeared to be one of the worst Asian performers, with Hong Kong 20% and Japan 35% losses respectively. Stocks of HSBC Holdings PLC lost 5.2%.


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