Hang Seng Tumbles 1.7% at Finish
The Hang Seng plunged 297 points or 1.7% to end at 17,692 on the first trading day of a new month, snapping gains from the prior two sessions and retreating from a 6-month high amid a plunge in US futures as fears mounted, given that September is historically a volatile month for stock markets.
All sectors fell, with property down 3.3% due to a slump of 13.5% in New World Dev. as the indebted builder expected its first annual loss in two decades. Property, consumers, and financials also saw big falls, as economic uncertainty in China persisted, marked by a divergence in the Caixin and official manufacturing PMIs in August, with the latter shrinking for the fourth month. Capping the fall were China's continued efforts to curb an extended rally in bond markets.
Meanwhile, hopes prevailed that the US Fed will start an easing cycle later this month. Among today's big drags were Nongfu Spring (-5.3%), China Resources Land (-5.4%), BYD Electronic (-4.2%), and Semicon Manufacturing (-3.8%).
Source: Trading Economics
