Hong Kong stocks lost ground for the fourth consecutive day, this is now the longest decline in two months, as investors digested the absence of a more meaningful and forceful stimulus from China along with the fallout of Donald Trump’s re-election, according to a detailed report by the South China Morning Post. <o:p></o:p>

The Hang Seng Index lost 0.1 per cent of its value and touched 19,823.45 on closing, completing a 5.4 per cent loss in the four-day run. Whereas the Hang Seng Tech Index dropped by about 0.1 per cent.<o:p></o:p>

China indices bucked the trend<o:p></o:p>

China benchmarks bucked the trend by going against this direction. The CSI 300 Index rose 0.6 per cent, and the Shanghai Composite Index also added 0.5 per cent.<o:p></o:p>

Biopharmaceutical firm Wuxi AppTec and affiliate Wuxi Biology led the pack of decliners. Investors will also shift focus on a slew of earnings by major companies such as Tencent Holdings and Meituan this week, detailed the South China Morning Post report further. <o:p></o:p>

Hang Seng Index fell below 20,000 for the first time since September 26<o:p></o:p>

The Hang Seng Index closed below the 20,000-point mark for the first time since September 26 on Tuesday as investors moved to a defensive mode after the disappointing outcome of China’s legislative meeting last week. <o:p></o:p>

The legislature’s standing committee only approved bond issuances to address local-debt issues, bringing down expectations of more measures to boost consumption and the employment rate.<o:p></o:p>

“The current weakness seen in the Hong Kong stock market has been attributed to the lack of details of the promised fiscal stimulus measures from China to negate the ongoing deflationary spiral,” said Kelvin Wong, an analyst at Oanda. <o:p></o:p>

He further stated that financial market participants have started losing confidence in the timing and willingness of China’s top policymakers to enact hard hitting measures to jump start consumer spending. <o:p></o:p>

Threat of Trump trade and tariffs looms<o:p></o:p>

The threat of Trump trade also put investors in Asia on the defensive. The US president-elect favours higher tariffs, trade protectionism and tax cuts, policies that will heighten geopolitical tensions, stoke inflation and hamper interest-rate cuts. <o:p></o:p>

The trading pattern has already been reflected in some asset classes, with the yield in US Treasuries rising and gold prices falling from a record. Further, Bitcoin has also risen rapidly since the US election results. <o:p></o:p>

UBS Global Wealth Management, a segment of the biggest bank in Switzerland,&nbsp;reduced its forecast for Chinese stocks due to the possibility of additional US tariffs and disappointing stimulus.<o:p></o:p>

In this environment of geo-political tensions, global investors will now focus on the economic steps taken by the upcoming Trump administration. These developments will help investors in making more informed investment choices in future. <o:p></o:p>

<o:p></o:p>

Hong Kong stocks lost ground for the fourth consecutive day, this is now the longest decline in two months, as investors digested the absence of a more meaningful and forceful stimulus from China along with the fallout of Donald Trump’s re-election, according to a detailed report by the South China Morning Post.

Hong Kong stocks lost ground for the fourth consecutive day, this is now the longest decline in two months, as investors digested the absence of a more meaningful and forceful stimulus from China along with the fallout of Donald Trump’s re-election, according to a detailed report by the South China Morning Post. The Hang Seng Index lost 0.1 per cent of its value and touched 19,823.45 on closing, completing a 5.4 per cent loss in the four-day run. Whereas the Hang Seng Tech Index dropped by about 0.1 per cent. China indices bucked the trend China benchmarks bucked the trend by going against this direction. The CSI 300 Index rose 0.6 per cent, and the Shanghai Composite Index also added 0.5 per cent. Biopharmaceutical firm Wuxi AppTec and affiliate Wuxi Biology led the pack of decliners. Investors will also shift focus on a slew of earnings by major companies such as Tencent Holdings and Meituan this week, detailed the South China Morning Post report further. Hang Seng Index fell below 20,000 for the first time since September 26 The Hang Seng Index closed below the 20,000-point mark for the first time since September 26 on Tuesday as investors moved to a defensive mode after the disappointing outcome of China’s legislative meeting last week. The legislature’s standing committee only approved bond issuances to address local-debt issues, bringing down expectations of more measures to boost consumption and the employment rate. “The current weakness seen in the Hong Kong stock market has been attributed to the lack of details of the promised fiscal stimulus measures from China to negate the ongoing deflationary spiral,” said Kelvin Wong, an analyst at Oanda. He further stated that financial market participants have started losing confidence in the timing and willingness of China’s top policymakers to enact hard hitting measures to jump start consumer spending. Threat of Trump trade and tariffs looms The threat of Trump trade also put investors in Asia on the defensive. The US president-elect favours higher tariffs, trade protectionism and tax cuts, policies that will heighten geopolitical tensions, stoke inflation and hamper interest-rate cuts. The trading pattern has already been reflected in some asset classes, with the yield in US Treasuries rising and gold prices falling from a record. Further, Bitcoin has also risen rapidly since the US election results. UBS Global Wealth Management, a segment of the biggest bank in Switzerland, reduced its forecast for Chinese stocks due to the possibility of additional US tariffs and disappointing stimulus. In this environment of geo-political tensions, global investors will now focus on the economic steps taken by the upcoming Trump administration. These developments will help investors in making more informed investment choices in future.

Hong Kong stocks cap longest losing streak in months on poor stimulus by China

Hong Kong's economic woes showed no sign of easing Wednesday after a key measure of business confidence fell to its lowest level in more than a decade as the city reels from the global trade war and violent democracy protests.

The Purchasing Managers Index -- which measures the health of the private sector -- dropped to 39.3 in October, its worst reading since 2008 during the global financial crisis, heaping fresh misery on the unrest-plagued city.

The international finance has been plunged into a recession by the fallout from the China-US trade war and five months of seething pro-democracy protests that Beijing has taken a hardline approach against.

IHS Markit, which surveys around 400 private companies to build the PMI dataset, said business activity was now falling at its fastest rate on record. The latest reading is well below the 50 level that separates growth from contraction and is also sharply down from the 41.5 seen in September.

"The ongoing political unrest and impact of trade tensions saw business activity fall at the sharpest pace since the survey started over 21 years ago," Bernard Aw, principal economist at IHS Markit, wrote.

"Anecdotal evidence revealed that the retail and tourism sectors remained particularly affected."

Aw added the city was experiencing a record decline in demand from mainland China.

Hong Kong's economy was already facing strong headwinds at the start of 2019 as it was hit by the trade war, battering a city that is hugely reliant on the world's two largest economies.

In the first quarter, the city was growing at a lackluster 0.6 per cent.

But the protests that erupted in June only made matters worse.

Figures released by the government last week showed gross domestic product shrank 3.2 per cent in the third quarter compared with the previous three months, when it saw a 0.4 per cent drop.

That means the city is experiencing a technical recession, with two back-to-back periods of contraction.

It is the first time the city has witnessed a recession since early 2009 at the height of the financial crisis.

Last month Financial Secretary Paul Chan warned it was "very likely" the city would end the year in a full-blown recession.

Overseas visitors have fallen by as much as 40 per cent, especially from mainland China, which accounts for 80 per cent of the city's tourists.

Retail figures have tumbled around a fifth for August and September.

This summer's protests were initially sparked by a now-abandoned plan to allow extraditions to the mainland with millions hitting the streets.

As Beijing and local leaders dug in the protests snowballed into a wider movement calling for greater democracy and police accountability with violence by both protesters and police increasing with each passing month.

Hong Kong's economic woes showed no sign of easing Wednesday after a key measure of business confidence fell to its lowest level in more than a decade as the city reels from the global trade war and violent democracy protests.

Hong Kong's economic woes showed no sign of easing Wednesday after a key measure of business confidence fell to its lowest level in more than a decade as the city reels from the global trade war and violent democracy protests. The Purchasing Managers Index -- which measures the health of the private sector -- dropped to 39.3 in October, its worst reading since 2008 during the global financial crisis, heaping fresh misery on the unrest-plagued city. The international finance has been plunged into a recession by the fallout from the China-US trade war and five months of seething pro-democracy protests that Beijing has taken a hardline approach against. IHS Markit, which surveys around 400 private companies to build the PMI dataset, said business activity was now falling at its fastest rate on record. The latest reading is well below the 50 level that separates growth from contraction and is also sharply down from the 41.5 seen in September. "The ongoing political unrest and impact of trade tensions saw business activity fall at the sharpest pace since the survey started over 21 years ago," Bernard Aw, principal economist at IHS Markit, wrote. "Anecdotal evidence revealed that the retail and tourism sectors remained particularly affected." Aw added the city was experiencing a record decline in demand from mainland China. Hong Kong's economy was already facing strong headwinds at the start of 2019 as it was hit by the trade war, battering a city that is hugely reliant on the world's two largest economies. In the first quarter, the city was growing at a lackluster 0.6 per cent. But the protests that erupted in June only made matters worse. Figures released by the government last week showed gross domestic product shrank 3.2 per cent in the third quarter compared with the previous three months, when it saw a 0.4 per cent drop. That means the city is experiencing a technical recession, with two back-to-back periods of contraction. It is the first time the city has witnessed a recession since early 2009 at the height of the financial crisis. Last month Financial Secretary Paul Chan warned it was "very likely" the city would end the year in a full-blown recession. Overseas visitors have fallen by as much as 40 per cent, especially from mainland China, which accounts for 80 per cent of the city's tourists. Retail figures have tumbled around a fifth for August and September. This summer's protests were initially sparked by a now-abandoned plan to allow extraditions to the mainland with millions hitting the streets. As Beijing and local leaders dug in the protests snowballed into a wider movement calling for greater democracy and police accountability with violence by both protesters and police increasing with each passing month.

Hong Kong's economic woes deepen with plunging business outlook

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Hong Kong stocks cap longest losing streak in months on poor stimulus by China

Hong Kong's economic woes deepen with plunging business outlook