Hong Kong stocks slid to the lowest in two weeks, taking cues from sell-offs in Asia and the US, after weak American manufacturing data and a surge in the Japanese yen put investors on tenterhooks.
The Hang Seng Index fell 1.1 per cent to 17,457.34, the lowest close since August 21. The Hang Seng Tech Index dropped 0.4 per cent, and the Shanghai Composite Index retreated 0.7 per cent.
Japan’s Nikkei 225 slumped 4.2 per cent and Taiwan’s Taiex tumbled 4.5 per cent as the worst performers in Asia. That followed a 2.1 per cent decline in the S&P 500 overnight for its steepest drop since August, with the VIX Index – the so-called fear gauge – surging. AI chip maker Nvidia lost a record US$279 billion in market value.
Traders shifted to a risk-off mode after a report showed that US manufacturing activity shrank for a fifth straight month in August, overshadowing the Goldilocks scenario of resilient growth and low inflation.
Read more…
