Asian Market has dropped to 105 points due to the ongoing trade war between the United States and China. Escalating violence in Hang Kong has also contributed to the great fall in the market. Investors have been closely monitoring the development in the US-China trade war as President Donald Trump has denied scrapping of tariffs on Chinese goods. Earlier Chinese Commerce Ministry had announced that both nations had decided to wave off the existing tariffs in phases. Shareholders have also been analyzing the effect of ongoing mass demonstrations in Hong Kong. Rising violence in Hong Kong has also played a bigger role in the fall of the stock market index.
Amid massive demonstrations, Hong Kong police shot one protester, as crowd blocked subway lines and roads during the morning traffic. Initially, the police tried to use pepper spray and tear gas on demonstrators to disperse the crowd. At last, police had to open fire to bring the situation under control. Hong Kong has been witnessing such large-scale protests for the last five months, which has plunged the financial hub into its first time recession in a decade. Almost six months of protests began over a proposed extradition law and then it went on to include demands for greater democracy and police accountability. The protest has intensified further after the arrest of three pro-democracy lawmakers by the Hong Kong Police.
Real estate stocks have been majorly hit as shares of big property developers like Swire Pacific, Wharf Real Estate, Sun Hung Kai Properties, and New World Development have dropped more than 4 percent. The unrest in Hong Kong has also reminded the investors of persistent geopolitical risks as the US-China trade war drags further. However, Alibaba’s sales event has given a little bit of relief to the stakeholders helping them to keep a tab on consumer spending. Hong Kong’s Hang Seng Index has witnessed a 3 percent fall. US equity future also has fallen due to Donald Trump’s disagreement over scrapping off the tariffs. Although the trade advisor of White House has said, that Trump might postpone the tariffs on Chinese goods, which was supposed to take effect in December.