Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Global stocks skid as Hong Kong returns as Sino-U.S. flashpoint

Stock MarketsMay 22, 2020 02:42AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A man wearing protective face mask, following an outbreak of the coronavirus, is reflected on a screen displaying stock prices outside a brokerage in Tokyo

By Hideyuki Sano

TOKYO (Reuters) - Global shares tumbled on Friday as Hong Kong's political unrest returned as a flashpoint in fast-deteriorating U.S.-China relations, following Beijing's moves to impose a new security law on the city.

The Asian financial hub's benchmark Hang Seng index (HSI) sank 5% to a seven-week low, pulling MSCI (NYSE:MSCI)'s broadest index of Asia-Pacific shares outside Japan (MIAPJ0000PUS) down 2.5%.

The CSI300 index of mainland Chinese shares (CSI300) dropped 1.9% while Japan's Nikkei (N225) lost 1%. Pan-European Euro Stoxx 50 futures (STXEc1) were down 0.97% while e-mini futures for U.S. S&P500 lost 0.8%.

China is set to impose new national security legislation on Hong Kong to tighten its grip on the semi-autonomous city.

The decision drew a warning from President Donald Trump that Washington would react "very strongly" against the attempt to gain more control over the former British colony.

"It is starting to look like a U.S.-China summer of discontent in the making," said Stephen Innes, chief global market strategist at AxiCorp.

"So far, China's response has been relatively tame despite Trump's daily goading. That might be due so that policymakers can focus on the NPC, but there is always the possibility of a firmer response."

Hong Kong activists called on Friday for people to rise up against Beijing's plans although a proposed midday march in the central financial district did not materialise.

The new Sino-U.S. rift comes amid already tense relations between the two superpowers after Washington stepped up its rhetoric against China over the coronavirus and other points of difference.

Earlier this month, the U.S. State Department delayed a report to Congress assessing whether Hong Kong enjoys sufficient autonomy from China to continue receiving special treatment from the United States.

Washington has ramped up criticism of China over the origins of the pandemic. Last week, it moved to block global chip supplies to blacklisted telecoms equipment giant Huawei Technologies, while the U.S. Senate passed legislation that could prevent some Chinese companies from listing their shares on U.S. exchanges.

Rising tensions are casting a pall over recent optimism that the worst of the pandemic's economic impact was already over in most developed countries.

The pace of recovery remains highly uncertain -- a point highlighted by China's decision not to set an economic growth target this year for the first time in decades.

While Beijing pledged more government support for the virus-hit economy, it set a target to create over 9 million urban jobs this year, down from a goal of at least 11 million in 2019 and the lowest since 2013.

"The absence of a GDP growth target for this year confirms that, as we expected, policymakers accept that, after the plunge in Q1, economic growth will be low for 2020 as a whole even with a significant sequential recovery in Q2-Q4," Oxford Economics said in a note to clients.

"The sizeable overall fiscal deficit target indicates significant policy support for the domestic recovery that we expect to continue despite the challenging external background. We expect year-on-year GDP growth to average 4% in H2."

The worsening mood pushed riskier currencies lower, with the Australian dollar dropping 0.5% to $0.6531 and the euro easing 0.25% to $1.0922 (EUR=).

The safe-haven yen gained 0.15% to 107.45 per dollar .

The yen brushed off the Bank of Japan's new lending scheme to channel more money to small businesses, which mimics the U.S. Federal Reserve's "Main Street" programme.

The decision had been widely anticipated after the BOJ flagged the creation of the scheme last month.

Oil prices also tumbled from a two-month peak with U.S. crude futures (CLc1) losing 7.3% to $31.44 per barrel.

Global stocks skid as Hong Kong returns as Sino-U.S. flashpoint
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (18)
Chris Sundo
Chris Sundo May 22, 2020 7:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
'..Global shares tumbled on Friday as Hong Kong's political unrest returned as a flashpoint in fast-deteriorating U.S.-China relations..' -- I don't think so. We just needed a steam bl ow-off from being overbought. I bet the deep state gave another bonus to China for causing a menacing ..
shuai deng
shuai deng May 22, 2020 7:10AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Keep dreaming buddy, I'm in beijing right now, and people have nearly forgotten about the pandemic ravaging outside our border. Reality's gonna teach you, China have never told a single lie since the beginning and your government have never told a single truth Now's your time to pay
Arijita Chaudhuri
Arijita Chaudhuri May 22, 2020 7:10AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
thats so mean of them of not caring and forgetting the suffering of world outside their border
Brian Helmuth
Brian Helmuth May 22, 2020 7:10AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
nice job with the propaganda and bamboozling. just dont touch Taiwan that will risk war
Bulls MakeMore
Bulls MakeMore May 22, 2020 3:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Throughout human history, the facts point to freedom and democracy. There's a reason the U.S. is by far the most diverse country on the planet, by far the most immigrants since its founding. Facts.
Bulls MakeMore
Bulls MakeMore May 22, 2020 3:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China should be liberated, saved from their oppressive leaders/regime in power. The good, GREAT Chinese people deserve the freedom to choose for themselves how they want to live their lives, under a system of laws designed to protect the basic human rights of all people, or as best as humanly possible.
HouseofJenga Tiger
HouseofJenga May 22, 2020 3:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Like how you brought freedom to Vietnam, Iraq, Libya, Afghanistan? What a paradise after you invaded. Not.
Chris Sundo
Chris Sundo May 22, 2020 3:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bulls MakeMore  -- Very much agree. If the basically born-good people of China were to be able to enjoy freedom of speach, were to be able to enjoy protection from the ccp, protection from nefario us rulers like Xi, and able to enjoy protection from being hauled off into a bra in washing camp just because the vain ccp rulers can not hear being told the truth, then the true Chinese virtues of the old China would return and allow China the joy of rebuilding their nation from the ashes caused by the ccp and Xi. Sad the way China's public purse has been loo ted by the ccp and sad how good people who speak the truth are being harassed, monitored and sent for brai n-wash retraining. Sad to see our good neighbor China slide into the ab yss of mental subversion, and look at how shuai deng is suffering by claiming 'China have never told a single lie since the beginning'. Wow, I wonder what they fed poor shuai deng to live in such lack of reality. Has he not followed the ophthalmologist's plight in January?
Brian Helmuth
Brian Helmuth May 22, 2020 3:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
diversity makes us weak wake tf up lol
Kaveh Sun
Kaveh Sun May 22, 2020 2:50AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China puts an end to hk democracy. It will be one country, one system.
Liew Chee Fah
Liew Chee Fah May 22, 2020 2:50AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Good, resolve it once for all.
Therdthai Sodchuenpanich
Therdthai Sodchuenpanich May 22, 2020 2:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Capitalism is a fake. It brings people to ****at the end.
Tyler Lee
Tyler Lee May 22, 2020 2:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Go to China
Anthony Anthony
Anthony Anthony May 22, 2020 2:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why do we give a chit about hong kong? This chitty place has f the market few time. All I care is my portfolio. China or whoever ease wipe out this chitty place
Vorlon Firstone
Vorlon Firstone May 22, 2020 2:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Your chitty portfolio will be worthless very very soon
Diddl One
Diddl One May 22, 2020 2:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I was already wondering if people believe China will just roll over. They have not understood the Chinese view on the century of shame. And as Napoleon put it: "China is a sleeping lion, let him sleep! When he wakes up, he drives the world crazy" The Chinese will not go quietly into the night.
Brian Helmuth
Brian Helmuth May 22, 2020 2:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Agreed. China never forgot. They still must be stopped though.
Diddl One
Diddl One May 22, 2020 2:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you can't stop them, you have to convince them so they stop by themselves.
Jack Zhang
Jack_A May 22, 2020 1:57AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hypocrisy!!!
Belfast Lion
Belfast Lion May 22, 2020 1:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trump need to start chinese sanctions. Hold the $ and ****up chinese ponz economy
weng yew Lee
weng yew Lee May 22, 2020 1:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
when china control currency it is called comunism, when US control stock market, it is call freeee market, so.called freedom no longer away from comunism 🤪🤑
Vorlon Firstone
Vorlon Firstone May 22, 2020 1:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
wew yew lew
Vincent TT
Vincent TT May 22, 2020 1:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trump is bringing china communism to the US we are no differrnt. He manipulated the News and The stories.
Chris Sundo
Chris Sundo May 22, 2020 1:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
That is correct, unfortunately. But Trump will not be reelected in 165 days. Americans are TOO GOOD for Trump. Americans realize that Trump has been fighting an inner mental war with himself and the whole time it was Trump versus Trump. Americans will be thankful to Trump for showing USA's future politicians the way of how to rough up China and how to get them to listen but Americans are slowly waking up that Trump is using the same methods that China and the ccp use.
Bob Flippa
Bob Flippa May 22, 2020 12:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
freedom is a fallacy, we are all slaves, long leashes than some others.but at the end of the day all slaves.
Kaveh Sun
Kaveh Sun May 22, 2020 12:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If u think u r a slave, u r a slave.
trevor hron
trevor hron May 22, 2020 12:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This little cat fight could get blown out of proportions quickly. China and USA could be terminating their traders deals pretty Fast. Both countries have ramped up rhetoric. If anything comes of it the ugliness will be furious on top of the already horrible economic hardships we’re in. Global recession will most definitely be on its way and if things get to far out of hand then a depression Will be following. Buckle up those sweat belts and don’t forget your helmet
Bob Flippa
Bob Flippa May 22, 2020 12:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
but the fed will save us right?
Ricky Feng
Ricky Feng May 22, 2020 12:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I am not sure what the comments below are about - but people in Hong Kong largely support the protest - it is quoted in the official (heavily biased towards the government) police review report that only 18% of the population oppose to the movement, while 63% of the population support the protest, even if it gets violent sometimes - these are all public data. Much more people are frightened of the CCP and the police force than the protesters. This bill is very bad for the people of Hong Kong, the economy of Hong Kong and basically it destroys the belief that HK can be different from China, whether politically or financially.
Zen Cat
LittleZenCat May 22, 2020 12:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
With the passing of the legislation, HK is pretty much finished. The bill directly contradicts the Basic Law of Hk, so it's essentially an invalidation in its entirety. The CCP basically have, again reneged on prior agreements. Foreign money will likely exit HK for Singapore pretty soon, if it hasn't already started. Within 5 years the international standing of the city will most likely drop significantly. This is pretty devastating.
Brian Helmuth
Brian Helmuth May 22, 2020 12:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I don't understand why Americans wouldn't support Hong Kongers considering we fought a violent revolution for freedom too.
David David
David9 May 22, 2020 12:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
When another country tried to interfere in our country, we went ballistic. But here we are, interfering in another country openly. The world sees this and is laughing at us from head to toe.
Johnson Gray
Johnson Gray May 21, 2020 11:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It became unacceptable when they started to get backing from CIA and Falungong.
David David
David9 May 21, 2020 10:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I think the new security law will be a very good thing. It will help Hong Kong a lot. This is good news for the citizens there. Many were frightened of those rioters last year.
Show previous replies (16)
Gerald Moline
Gerald Moline May 21, 2020 10:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
90% out of poverty? Who tells you that? CCP? here is some fact. Today, China is an upper-middle-income country and the world’s second largest economy. But its per capita income is still only about a quarter of that of high-income countries, and about 373 million Chinese are living below the upper-middle-income poverty line of US$5.50 a day. China also lags in labor productivity and human capital.  Income inequality has improved over the last decade but remains relatively high. I copy paste it. Here is the source https://www.worldbank.org/en/country/china/overview#1 , you can't say CCP is more reliable than world bank. I agree china grow really fast in the last 50 year. Thanks to international trade and the hardwork of mainland chinese.
Gerald Moline
Gerald Moline May 21, 2020 10:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Company like alibaba, tencent, huawei, etc are great company with their own unique culture and innovation. But do you think this company owe their success to CCP? They dominate china market because they have the product that solve fundamental problem and CCP is using them as their weapon. Huawei might have dominate the world 5G market if they are not associated with CCP. Unfortunately, every chinese company have to bow down to CCP. I don't think chinese company loves that, of course they might get some value from CCP. It will be unrealistic to say that chinese company doesn't profit from CCP. But compared to global dominance paid with transparency? I believe chinese company would love to choose the latter simply because there's more profit to it. CCP is probably one of the most evil government currently existed with terrible propaganda yet their people still believe in them. Kind of sad for such a great country.
mad god
mad god May 21, 2020 10:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yong: U need to see how much money you spend to support unemployed people. In finance, you look at absolute dollar impact not %. That is a simple fact David: 90% people out of poverty is a fake number. The local communist official forced low incomer to fabricate their income number in order to show they reached the goal. U should read more real data and news David and Yong are 50 cents army because David reached out other 50 cents dogs to support him in this article. Therefore you see more 50 cents dogs here because David cannot fight against all anti-communist comments
mad god
mad god May 21, 2020 10:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yong Kwet Ming  U need to see how much money you spend to support unemployed people. In finance, you look at absolute dollar impact not %. That is a simple fact David: 90% people out of poverty is a fake number. The local communist official forced low incomer to fabricate their income number in order to show they reached the goal. U should read more real data and news David and Yong are 50 cents army because David reached out other 50 cents dogs to support him in this article. Therefore you see more 50 cents dogs here because David cannot fight against all anti-communist comments
mad god
mad god May 21, 2020 10:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
David, Communist party introduced the extradition bill last year and triggered the entire protest in Hong Kong. Communist misjudged and underestimated the situation. The entire protest is caused by Communist party pushing the extradition bill. Have you ever seen or heard communist admitted that they made mistake in the past? NO, because they think they are god and never made any mistake. People learn from their mistake but Communist never made mistake, you agree?
perplexed76 .
perplexed76 . May 21, 2020 9:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
but as experts expected somewhat bigger tensions, markets will go higher on friday
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email