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Aug. 12, 2019, 11:57 p.m. EDT

Asian markets fall as Hong Kong tensions remain high

Nikkei, Hang Seng decline amid growing geopolitical uncertainty

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By Marketwatch and Associated Press


Reuters
Many flights were canceled again Tuesday at Hong Kong International Airport after it reopened.

Asian markets fell in early trading Tuesday as tensions in Hong Kong ratcheted up following protests Monday that shut down the city’s airport.

Hong Kong’s airport, one of the world’s busiest, struggled to reopen Tuesday, while protests continued, though at a smaller scale. While some flights resumed, many were canceled amid a backlog of flights following Monday’s closure.

After 10 weeks, the pro-democracy demonstrations show no sign of letting up, while Chinese officials have used the term “terrorism” to describe the protests. The clashes have weakened investors’ confidence, some analysts said, and there are fears that a harsh crackdown by China could trigger a global market selloff.

“Dropping the ‘T’ word is particularly disturbing as it does suggest a more aggressive mainland response, which triggered a wave of risk aversion across global markets,” Stephen Innes, managing partner at VM Markets, said in a note Monday night.

Read: How Hong Kong clashes could wallop the U.S. stock market

Meanwhile, China’s central bank set the yuan’s midpoint weaker than 7 per U.S. dollar for a fourth straight day Tuesday. The reference point of 7.0326 per dollar was weaker than the previous day, but still stronger than what analysts had expected.

Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +3.41%   fell 1.7%, while the Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP +1.73%   slipped 0.7% and the smaller-cap Shenzhen Composite /zigman2/quotes/210598015/delayed CN:399106 +2.55%   retreated 0.9%. Japan’s Nikkei /zigman2/quotes/210597971/delayed JP:NIK +1.18%   dropped 1.1% following a holiday Monday, and South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +1.52%   edged down 0.6%. Benchmark indexes in Taiwan /zigman2/quotes/210597977/delayed TW:Y9999 +1.35%  , Singapore /zigman2/quotes/210597985/delayed SG:STI +1.72%   and Indonesia /zigman2/quotes/210597981/delayed ID:JAKIDX +0.79%   all fell, while Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.92%   inched down slightly.

Among individual stocks, SoftBank /zigman2/quotes/207303954/delayed JP:9984 +3.85%   dropped in Tokyo trading, along with Fast Retailing /zigman2/quotes/200663563/delayed JP:9983 +2.76%   and Nintendo  . In Hong Kong, casino operator Galaxy Entertainment /zigman2/quotes/202884203/delayed HK:27 +3.15%  , insurer AIA Group /zigman2/quotes/203565558/delayed HK:1299 +5.65%   and developer Sino Land /zigman2/quotes/202960683/delayed HK:83 +4.32%   fell. Samsung /zigman2/quotes/209800866/delayed KR:005930 +0.79%   declined in South Korea, while Foxconn /zigman2/quotes/204111604/delayed TW:2354 +0.93%   fell in Taiwan. Beach Energy /zigman2/quotes/200513631/delayed AU:BPT +1.55%   surged in Australia, as did Fortescue Metals /zigman2/quotes/202351558/delayed AU:FMG +4.53%  .

Investor anxiety has also been fed by President Donald Trump’s threat of new U.S. tariff hikes on Chinese goods and weaker-than-expected data from India, Argentina and Singapore.

“The global economy is perched precariously, hoping for a positive inflection, but braced for a stumble,” said Vishnu Varathan of Mizuho Bank in a report.

On Wall Street, the benchmark S&P 500 had its biggest decline in a week while the Dow Jones Industrial Average lost nearly 400 points. Selling was widespread. Technology companies and banks accounted for a big share of the decline.

Investors sought safety in U.S. government bonds, sending their yields tumbling. The price for gold, another traditional safe-haven asset, closed higher.

The S&P 500 /zigman2/quotes/210599714/realtime SPX +0.48%   lost 1.2% to 2,883.09. The Dow /zigman2/quotes/210598065/realtime DJIA -0.07%   fell 1.5%, or 389.73 points, to 25,897.71. The Nasdaq composite /zigman2/quotes/210598365/realtime COMP +1.29%   dropped 1.2% to 7,863.41.

Trump has promised 10% tariffs on some $300 billion in Chinese imports that haven’t already been hit with tariffs of 25%. The new tariff would go into effect Sept. 1 and more directly affect U.S. consumers.

Last week, Trump said he’d be “fine” if the U.S. and China don’t go ahead with a meeting next month, dampening investors’ hopes for a resolution.

Benchmark U.S. crude   lost 13 cents to $54.80 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained 43 cents on Monday to close at $54.93. Brent crude  , used to price international oils, declined 19 cents to $58.38 per barrel in London. It added 4 cents the previous session to $58.57.

The dollar /zigman2/quotes/210561789/realtime/sampled USDJPY -0.1465%   gained to 105.57 yen from Monday’s 105.30 yen.

/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
23,745.49
+784.02 +3.41%
Volume: 1.21M
June 1, 2020 11:10a
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/zigman2/quotes/210598127/delayed
CN : China: Shanghai
2,901.82
+49.47 +1.73%
Volume: 14.13B
June 1, 2020 11:10a
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/zigman2/quotes/210598015/delayed
CN : Shenhzen Stock Exchange
1,832.05
+45.54 +2.55%
Volume: 21.67B
June 1, 2020 11:10a
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/zigman2/quotes/210597971/delayed
JP : Nikkei
22,135.75
+257.86 +1.18%
Volume: 0.00
June 1, 2020 11:30a
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,060.48
+30.88 +1.52%
Volume: 497,035
June 1, 2020 12:05p
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/zigman2/quotes/210597977/delayed
TW : Taiwan Stock Exchange
11,090.26
+148.10 +1.35%
Volume: 0.00
June 1, 2020 11:05a
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/zigman2/quotes/210597985/delayed
SG : Singapore: SGX
2,553.95
+43.20 +1.72%
Volume: 0.00
June 1, 2020 11:10a
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/zigman2/quotes/210597981/delayed
ID : Indonesia Stock Exchange
4,753.61
+37.43 +0.79%
Volume: 0.00
May 29, 2020 3:00p
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
5,808.40
+52.70 +0.92%
Volume: 398,256
June 1, 2020 1:05p
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/zigman2/quotes/207303954/delayed
JP : Japan: Tokyo
¥ 5,018.00
+186.00 +3.85%
Volume: 16.21M
June 1, 2020 11:30a
P/E Ratio
33.67
Dividend Yield
0.88%
Market Cap
¥9992.53 billion
Rev. per Employee
¥126.96M
loading...
/zigman2/quotes/200663563/delayed
JP : Japan: Tokyo
¥ 62,200.00
+1,670 +2.76%
Volume: 861,800
June 1, 2020 11:30a
P/E Ratio
42.68
Dividend Yield
0.77%
Market Cap
¥6179.06 billion
Rev. per Employee
¥40.83M
loading...
/zigman2/quotes/202884203/delayed
HK : Hong Kong
HK$ 53.95
+1.65 +3.15%
Volume: 4.42M
June 1, 2020 11:10a
P/E Ratio
17.98
Dividend Yield
1.69%
Market Cap
HK$226.72 billion
Rev. per Employee
HK$1.44M
loading...
/zigman2/quotes/203565558/delayed
HK : Hong Kong
HK$ 66.40
+3.55 +5.65%
Volume: 22.98M
June 1, 2020 11:10a
P/E Ratio
15.38
Dividend Yield
1.91%
Market Cap
HK$757.36 billion
Rev. per Employee
HK$12.98M
loading...
/zigman2/quotes/202960683/delayed
HK : Hong Kong
HK$ 9.42
+0.39 +4.32%
Volume: 6.30M
June 1, 2020 11:08a
P/E Ratio
9.75
Dividend Yield
5.84%
Market Cap
HK$63.62 billion
Rev. per Employee
HK$1.73M
loading...
/zigman2/quotes/209800866/delayed
KR : S. Korea: KRX
51,100.00
+400.00 +0.79%
Volume: 8.75M
June 1, 2020 12:05p
P/E Ratio
16.31
Dividend Yield
2.77%
Market Cap
₩344388.00 billion
Rev. per Employee
N/A
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/zigman2/quotes/204111604/delayed
TW : Taiwan
NT$ 54.40
+0.50 +0.93%
Volume: 1.45M
June 1, 2020 11:05a
P/E Ratio
11.30
Dividend Yield
4.60%
Market Cap
NT$76.24 billion
Rev. per Employee
NT$888.52M
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/zigman2/quotes/200513631/delayed
AU : Australia: Sydney
$ 1.64
+0.03 +1.55%
Volume: 7.80M
June 1, 2020 1:05p
P/E Ratio
6.54
Dividend Yield
1.22%
Market Cap
$3.68 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202351558/delayed
AU : Australia: Sydney
$ 14.53
+0.63 +4.53%
Volume: 7.37M
June 1, 2020 1:05p
P/E Ratio
6.25
Dividend Yield
6.88%
Market Cap
$42.78 billion
Rev. per Employee
N/A
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/zigman2/quotes/210599714/realtime
US : S&P US
3,044.31
+14.58 +0.48%
Volume: 4.38B
May 29, 2020 5:14p
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
25,383.11
-17.53 -0.07%
Volume: 545.14M
May 29, 2020 5:14p
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/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
9,489.87
+120.88 +1.29%
Volume: 4.24M
May 29, 2020 5:16p
loading...
/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
107.6610
-0.1580 -0.1465%
Volume: 0.0000
May 31, 2020 11:25p
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