Hang Seng Finishes 0.7% Lower
The Hang Seng index fell 0.7% to 26,384, influenced by Beijing-Tokyo tensions, reduced U.S. rate cut expectations, and upcoming loan prime rate fixings in China. Key decliners included Geely Auto, Trip.com, Lenovo Group, Horizon Robotics, Zhaojin Mining, and Orient Overseas. China plans a proactive fiscal policy to boost growth.
The Hang Seng dropped 188 points, or 0.7%, to 26,384 on Monday, extending losses from the prior session amid broad falls across sectors.
Traders shunned riskier assets after Chinese stocks retreated further amid heightened Beijing-Tokyo tensions, with China warning citizens against traveling to Japan.
Sentiment was also pressured by lower bets for a U.S. interest rate cut in December, following cautious signals from policymakers.
Attention turned to monthly loan prime rate fixings in the mainland later this week, after the PBoC kept rates at record lows for a fifth straight month in October.
A rise in U.S. futures capped further losses ahead of key data releases after the longest U.S. government shutdown.
Meanwhile, China plans a “more proactive” fiscal policy over the next five years to boost growth while managing debt risks.
Key decliners included Geely Auto (-1.8%), Trip.com and Lenovo Group (-3.8% each), Horizon Robotics (-4.2%), Zhaojin Mining (-2.8%), and Orient Overseas (-1.8%).
