Global Markets React to Economic Shifts and Geopolitics

On a tumultuous day for global markets, Hong Kong shares suffered their worst decline since 2008, while Chinese stocks remained resilient despite faltering optimism around stimulus. Emerging market stocks and currencies also took hits. Investors remain cautious amid geopolitical concerns and pending interest rate decisions in Kenya, India, and Israel.

In a volatile session for global markets, Hong Kong shares plummeted over 9%, marking their steepest drop since 2008. Concurrently, Chinese stocks managed to outperform amidst dimming hopes for new economic stimulus measures, closing with a healthy 6% gain despite some loss in momentum.

The fall in Hong Kong's Hang Seng Index, which significantly dragged down the MSCI emerging market index by 2.2%, was seen as a reflection of the current economic sentiment. Meanwhile, the yuan depreciated 0.6% in onshore trading, highlighting broader FX market caution.

Adding to the uncertainty were geopolitical unease in the Middle East and key interest rate decisions looming in Kenya, India, and Israel, all of which contributed to a general atmosphere of cautious trading among global investors.

(With inputs from agencies.)