Hong Kong stocks extended losses to hit 14-month low
05:15, 30 November 2021
Hong Kong stocks extended losses to hit a 14-month low as tech and real estate stocks dragged the market lower on Tuesday.
Benchmark Hang Seng Index fell 2% to 23,365.90 after lunch and was on track to close lower for a third straight session on Tuesday. Hang Seng TECH Index and Hang Seng Mainland Properties Index fell over 2% each on Tuesday.
Stock market in Hong Kong has been weak throughout the year, down over 15% in 2021, following Beijing's pressing regulatory action on China's private sector, cash crunch among Chinese property developers and a nationwide power shortage. Investor sentiment has further soured due to the emergence of the latest Omicron Covid-19 variant amid China's zero-Covid tolerance policy.
Tech, property stocks fall in Hong Kong
Late on Monday, Hong Kong authorities said they plan to expand border restrictions banning entry to non-residents from additional 13 countries including Australia and six European countries.
Property developer China Resources Land was the top intraday percentage loser in Hong Kong on Tuesday, down over 5%. Food delivery firm Meituan fell over 4% to hit a near eight-week low. E-commerce giant Alibaba Group declined 3.4% to emerge among the top 10 losers by Tuesday afternoon.
Meanwhile, Australia’s benchmark S&P/ASX 200 Index closed 0.7% higher at 7,297.40 on Tuesday. S&P/ASX 200 Financials Index rose 0.7% to 6,313.80, a day after banking regulator Australian Prudential Regulation Authority (APRA) released its new bank capital framework which requires banks to ensure existing high levels of capital adequacy are maintained.
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APRA’s new rules
Australian financial conglomerate Macquarie Group flagged an AUD2.2bn ($1.57bn) hit to its surplus capital due to APRA’s latest reforms, while Commonwealth Bank of Australia said it will disclose the impacts related to the new reforms at its full-year results presentation.
Macquarie Group investors were unfazed by the news pushing the stock up by 1.7%. Commonwealth Bank of Australia, however, lost 0.6% on Tuesday.
Westpac Banking erased gains to fall over 1% on Tuesday. The “Big Four” bank said it agreed with the Australian Securities & Investment Commission to pay penalties of AUD113m ($80.72m) for charging fees to deceased customers, among others.
Japan recovers, South Korea slumps further
Elsewhere, Japan’s Nikkei 225 Index bounced back from an over six-week low to inch 0.4% higher by Tuesday afternoon.
Topix-17 Transportation & Logistics and Topix-17 Energy Resources indices were the top performing sectoral indices on Tuesday, up 2.3% and 2%, respectively.
Meanwhile, South Korea’s KOSPI index lost 1.2% on Tuesday to take its losing streak to six straight sessions as the emergence of the Omicron Covid-19 variant continues to unnerve investors.