Stock Markets Update: Hang Seng Falls 8.89%, Nikkei and Kospi index Slip While Shanghai Surges

On Tuesday, October 8, 2024, Asian markets displayed a mixed performance as investors reacted to various economic indicators and market stimuli. Notably, Hong Kong’s Hang Seng Index experienced a significant drop of 8.89%, while Japan’s Nikkei 225 and South Korea’s Kospi also slipped. In contrast, the Shanghai Composite Index surged, reflecting a robust recovery in mainland China following its holiday break.

Full Details

The Hang Seng Index closed at 21,289.60, down from 23,099.78, marking one of its steepest declines in recent months. This downturn came despite a strong opening for mainland Chinese stocks after a week-long holiday, where the CSI 300 Index initially jumped by 10.8% before settling lower. The decline in Hong Kong was attributed to a combination of profit-taking and concerns over the sustainability of recent gains in the face of global economic pressures.

Key Market Movements

• Hang Seng Index: Closed down 8.89% at 21,289.60.
• Nikkei 225: Fell by 1.01%, closing at approximately 32,000.
• Kospi: Dropped by 0.50%, reflecting ongoing concerns about South Korea’s economic outlook.
• Shanghai Composite Index: Surged by 10.1%, closing at around 3,200.

The mixed results across these indices highlight the divergent paths of Asian economies as they navigate post-pandemic recoveries and external economic pressures.

Economic Indicators

In Japan, household spending showed a slight decline of 1.9% year-on-year for August, which was less severe than analysts had predicted. This data influenced investor sentiment and contributed to the Nikkei’s decline. Meanwhile, South Korea’s Kospi was affected by disappointing earnings guidance from major companies like Samsung Electronics, which projected lower-than-expected profits for the third quarter.

Market Reactions

Investors are closely monitoring developments related to China’s economic policies as the National Development and Reform Commission is expected to announce new stimulus measures aimed at bolstering growth. The recent surge in Shanghai stocks reflects optimism about these potential policies, even as Hong Kong investors remain cautious.

Global Context

The declines in Asian markets come on the heels of a mixed performance in U.S. markets, where rising oil prices and increasing Treasury yields dampened investor sentiment. The Dow Jones Industrial Average fell by nearly 0.94%, while the S&P 500 and Nasdaq also recorded losses.