Hong Kong tensions drive local shares down
Hong Kong stocks continued to tumble down as Beijing’s new attempt to establish control over the region reignited the riots. Meanwhile, major Asian indexes edged higher.
Hang Seng lost 0.4% on May 25, following a 5.5% drop on May 22. China is reviewing the latest security laws, which will, supposedly, severely limit the autonomy of the region. Protests and clashes with the police came back soon after.
The tensions became even more heated because of the United States. President Trump warned about a “very strong” retaliation. The Commerce Department already blacklisted 33 companies and organizations from China.
MSCI’s Asia-Pacific index gained 0.3%. Stocks in New Zealand, Australia and South Korea saw growth. E-minis for S&P500 went up as well, gaining 0.5%. The US dollar was reinforced by investors looking for the safe haven.
Nikkei added 1.7%, following a report on new stimulus measures. The government might commit as much as US$929 billion to the relief efforts, that are supposed to help the companies impacted by the pandemic.