HK stocks set to extend losing streak on Wall Street woes, geopolitical tensions

Nov 19, 2025, 11:40 GMT+7
Reuters - Hong Kong stocks are heading for their fourth straight session of decline following an overnight drop on Wall Street, while China shares steadied as financial plays rebounded.
** Market sentiment remains subdued as the Sino-Japan diplomatic crisis deepens, adding to economic worries with no policy easing in sight.
** Hong Kong benchmark Hang Sengdropped 0.5% by the midday break, on track for a four-day losing streak.
** In mainland China, the blue-chip CSI300 Indexclimbed 0.2%, while the Shanghai Composite Indexbarely moved.
** Market participants lost risk appetite as U.S. stocks fell for a fourth day amid valuation worries and doubts over an interest rate cut next month.
** The mood is further soured by deteriorating relations between Beijing and Tokyo over Japanese Prime Minister Sanae Takaichi's comments on Taiwan.
** Japan has warned its citizens in China to step up safety precautions as a Tuesday meeting between Chinese and Japanese officials to de-escalate tensions offered few signs of a breakthrough. Meanwhile, the United States confirmed the sale to Taiwan of an advanced air defence missile system, in the second such weapons package for Taipei in a week.
** Escalating geopolitical tensions could add fresh pressure to China's struggling economy.
** "After six months of improving sentiment, China's growth outlook took a sharp turn in November," BofA Securities said in its latest Asia Fund Manager Survey, where 29% of respondents now expect a weaker economy. "Despite this, investors foresee limited policy easing."
** Tech sharesled the decline in Hong Kong. Xiaomiplunged 4% after the company warned of further hikes in smartphone prices next year due to soaring memory chip costs. Chinese search engine Baidulost nearly 1% after reporting a 7% fall in quarterly revenue.
** In China, strength in energyand financial shares offset losses in real estateand media plays.

Sumber : Reuters