Market Shivers: U.S. Elections Rattle China, Hong Kong Stocks
China and Hong Kong stocks declined as investor uncertainty grows with the approaching U.S. presidential election. The possibility of a Trump presidency and trade tensions, alongside inflation worries, affected market sentiment. Analysts suggest caution as policy outcomes remain uncertain and fiscal stimuli are anticipated.
China and Hong Kong stocks ended lower on Thursday, with key mainland indexes snapping their four-day winning streak. This downturn occurred as investors adopted a cautious stance ahead of the upcoming U.S. presidential election.
Market sentiment has dampened amid growing speculation about a possible second Donald Trump presidency and the associated risks of increased trade tariffs. Christopher Wong, FX strategist at OCBC Bank, noted that betting markets favor Trump over Harris, fueling concerns about renewed tariffs, inflation, and fiscal uncertainty.
In response, the Shanghai Composite index fell by 0.68% to 3,280.26 points, while the CSI300 index dropped 1.12%. Hong Kong stocks were also impacted, with the Hang Seng China Enterprises Index down 1.59% and tech stocks among the biggest losers. As the U.S. election draws near, analysts advise caution regarding market volatility and anticipate further policy measures from China.
(With inputs from agencies.)
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