Hong Kong stocks fell to a two-month low amid a tit-for-tat tariff war between China and the US that is sending shock waves through the global economy.
On Monday, the Hang Seng Index dropped 9.4 per cent to 20,724.48 as of 9.55am local time, the steepest slide since October 8. The Hang Seng Tech Index slumped 10.7 per cent. On the mainland, the CSI 300 Index dropped 6.2 per cent and the Shanghai Composite Index retreated 6.2 per cent.
Markets on the mainland and in Hong Kong were closed Friday to celebrate the Ching Ming Festival public holiday.
US investment bank Goldman Sachs lowered its 12-month growth estimate on Chinese equities on Sunday. The investment bank cut its growth outlook for the MSCI China Index to 10 per cent from 16 per cent and the CSI 300 Index was reduced to 17 per cent from 19 per cent.
Other major Asian markets weakened. Japan’s Nikkei 225 slid 6.3 per cent, South Korea’s Kospi retreated 4.2 per cent and Australia’s S&P/ASX 200 lost 3.7 per cent.
