Disappointing Beijing Stimulus Sends Hong Kong Stocks Plummeting

Hong Kong stocks declined sharply in response to Beijing's underwhelming stimulus measures, overshadowing Wall Street's record highs. Bitcoin reached a new peak following Trump's election win, while global markets anticipate crucial U.S. consumer inflation data which could impact future interest rates.


Devdiscourse News Desk | Updated: 11-11-2024 08:42 IST | Created: 11-11-2024 08:42 IST
Disappointing Beijing Stimulus Sends Hong Kong Stocks Plummeting
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Hong Kong stocks experienced a significant decline on Monday, leading Asia's market downturn, as investors deemed Beijing's latest stimulus inadequate. This overshadowed previous record highs on Wall Street, and indicated potential strength in the market opening.

Bitcoin's price achieved an all-time high after Donald Trump's election victory, alongside the election of pro-crypto advocates to Congress. This development fueled expectations for a lenient regulatory climate, while the dollar held near recent highs against other major currencies. Investors are watching closely for upcoming U.S. consumer inflation data and the Federal Reserve's monetary policies.

Hong Kong's Hang Seng index recorded a 2.5% drop, with significant losses in mainland Chinese property shares, amidst regional declines across Asia's major stock markets. Investors were disenchanted by the Chinese stimulus package, which lacked direct economic injection, especially in light of the U.S. administration's tariff threats. Meanwhile, political shifts in Congress suggest potential tax cuts and regulatory relaxations, a prospect favorably impacting equities.

(With inputs from agencies.)

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