Wreckage Across Global Equity Markets Has Hong Kong Faring WorstBy
Nowhere has this week’s market turmoil been more painful than in Hong Kong.
Two of the city’s main equity indexes are among the world’s worst performing benchmarks since the selloff accelerated last Friday, down more than 9 percent and on track for their worst weeks since at least 2011. The Hang Seng Index and the Hang Seng China Enterprises Index are both heading for a so-called correction -- a decline of at least 10 percent -- just two weeks after they peaked.
Traders in Hong Kong typically have to reckon with volatility in mainland China, as well as taking their cues from any changes in sentiment towards global developed markets. Caught in the crossfire between risk-aversion in the U.S. and a selloff onshore this week, the city’s equities lost $475 billion in value through Thursday, giving up much of this year’s gains.
Not a single major market in Asia has been spared. The MSCI Asia Pacific Index, which last closed at a record on Jan. 26, has flipped to oversold from overbought in days.
Here’s the scorecard for this week for Asian benchmarks:
|Hang Seng China index||-13%|
|Hang Seng Index||-9.9%|
|Shanghai Composite Index||-9.7%|