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HK stocks snap four-session winning streak as global markets slump
March 22, 2017 / 8:22 AM / 6 months ago

HK stocks snap four-session winning streak as global markets slump

March 22 (Reuters) - Hong Kong stocks fell on Wednesday, with sentiment hurt by sharp losses on Wall Street on concerns U.S. President Donald Trump will struggle to deliver tax cuts and other reflationary economic policies.

The benchmark Hang Seng index broke a four-session winning streak. It fell 1.1 percent at the close, to 24,320.41 points.

The Hong Kong China Enterprises Index lost 1.8 percent, to 10,456.96 points, partly due to weaker southbound inflows from Shanghai through a trading link.

“Investors are taking a review of the global economic recovery as Trump fails to put forward specific figures on his tax cut policies and infrastructure plans,” said Linus Yip, strategist at First Shanghai Securities Ltd.

Profit-taking was also to blame after the recent run-up, Yip said, adding that some investors worried stocks were too expensive and such high valuations weren’t justified.

On Tuesday, both the S&P 500 and the Dow Jones Industrial Average booked their biggest one-day slide since before Trump’s election victory in November on concerns over his capability to deliver promised corporate tax cuts.

Inflows from the Shanghai-Hong Kong Stock Connect were 7.8 percent of Wednesday’s daily quota, less than one-third of the quota of 24.5 percent used on Tuesday.

Sectors lost ground across the board, with industrial stocks leading the declines.

Reporting by Jackie Cai and John Ruwitch; Editing by Randy Fabi

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