ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Nikkei Markets

Asian equities slump as violence erupts in Hong Kong

Uncertainty over US-China trade also dampens investor appetite

HONG KONG (Nikkei Markets) -- Asian shares outside of Japan tumbled Monday amid a slide in Hong Kong equities after a protester was shot at by the police in the city.

The Nikkei Asia300 index of companies outside Japan fell 1.7% to 1,317.25.

Hong Kong's Hang Seng Index closed 2.6% lower on Monday, its biggest decline in three months, after police reportedly shot at least one protester. The incident risked further political unrest in the city, which has been marred by protests for months. The protests, which began against a bill that would allow Hong Kong citizens to be extradited to China, have intensified amid disillusionment against police action and demands for more autonomy.

U.S. equity index futures slipped and safe-haven yen advanced. The dollar remained at a one-month high versus a basket of major currencies.

Risk appetite on Monday was further hurt by remarks by the U.S. President. Donald Trump pushed back on reports that tariffs on China would be rolled back, saying that he had not agreed to anything yet. China's Commerce Ministry earlier last week had said that tariffs could be removed as part of an interim trade deal. The Shanghai Composite declined 1.8% and an index of Chinese companies listed in Hong Kong dropped 2.5%.

Stephen Innes, the chief market strategist at AxiTrader, said that investors were taking a cautionary approach on the back of the trade uncertainty and "gloomy" China inflation data.

Consumer prices in China rose by 3.8% year-on-year last month, quicker than the 3.3% expected, data released over the weekend showed. Factory prices declined 1.6%, a 10th more than forecast.

Hong Kong property developers were among the biggest losers on the A300 gauge on Monday. Swire Pacific fell 5.2% and New World Development slid 4.2%, while Sun Hung Kai Properties and Henderson Land Development declined 4.3% and 2.5%, respectively.

DBS Group Holdings edged 0.1% higher. Singapore's largest lender posted a better-than-expected 15% year-on-year rise in the September quarter net profit.

Singapore Technologies Engineering declined 2.9%. The company on Monday reported a 3.4% increase in net profit for the July-September quarter.

Tata Power fell 3.7% after the Indian company's September quarter net income missed estimates of analysts polled by Reuters.

Central Pattana dropped 2.6% after Thailand's largest retail property developer's third-quarter net profit reportedly declined 6%.

--Nimesh Vora

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media