Hong Kong Stocks Fall on Fears About US Economy
The Hang Seng Index fell 2.3% on Monday, its biggest one-day drop in two weeks.
The sell-off was led by tech stocks, which fell 3.2%. Alibaba Group Holding Ltd. and Tencent Holdings Ltd. both fell more than 4%.
The decline in Hong Kong stocks came as investors grew increasingly worried about the US economy.
The US economy grew at an annual rate of just 2.6% in the first quarter, its slowest pace in a year. This has raised concerns that the US economy may be slowing down, which could hurt global growth prospects.
In addition, the US-China trade war has also weighed on investor sentiment. The two countries have imposed tariffs on hundreds of billions of dollars worth of goods, and there is no end in sight to the dispute.
The Hang Seng Index is now down 10% for the year.
This is the worst performance by the index since the global financial crisis in 2008. The sell-off in Hong Kong stocks is a sign that investors are increasingly worried about the global economic outlook.
Here are some of the key factors that are driving the sell-off in Hong Kong stocks:
- Concerns about the US economy
- The US-China trade war
- Rising interest rates
- A strengthening US dollar
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