Hong Kong stocks rebound a bit after the drops and gains during the past week.
Hong Kong’s Hang Seng Index (HSI) gained 1.1% on Monday, continuing a slight rebound after last week’s drops.
Though the index closed higher Friday, it slid almost 4.8% overall last week. That was the Hang Seng’s biggest weekly loss since August. The escalation of violent protests in recent days disrupted the city.
The Local Economy and Other News in the Asian Stock Market
The local economy has been influenced by the events, as well. On Friday, the Hong Kong government claimed that mass protests could cause the economy to shrink by 1.3% this year. The decrease would mark the first annual recession since 2009, the authorities warned.
After another intense trade week, Chinese social media and gaming giant Tencent (TCEHY) stock advanced 2.1%. TCEHY was reportedly negotiating with investors about a minority stake in Universal Music Group. Social media and gaming giant did not immediately respond to a request for comments about the topic.
China’s Shanghai Composite Index (SHCOMP) also built on its past gains and was last up 0.6%. The People’s Bank of China trimmed a key interbank lending rate two weeks after the central bank cut another important rate.
Elsewhere in the region, markets were comparatively muted. Japan’s Nikkei 225 (N225) stock advanced 0.3%. South Korea’s Kospi Index (KOSPI), however, slipped 0.3%.
Investors might be looking for more news on trade. Wall Street’s major indices all closed in the green on Friday in part because of U.S.-China trade optimism. Over the weekend, China’s The Ministry of Commerce said that US and Chinese negotiators had held a constructive discussion about a phase one deal.
While Z Holdings (YAHOY) and Line Corp (LN) stocks were last up 1.2% and 2.2% in Tokyo, US futures slightly retreated during Asian trading hours on Monday. However, futures for the S&P 500 (SPX), Dow (INDU), and Nasdaq (COMP) were all down.
