Stock market today: Hong Kong shares plunge as economic rescue plans from Beijing fall flat
Hong Kong's share benchmark has fallen more than 9% and other Chinese markets gave up much of their early gains as traders dumped shares following recent rallies
TOKYO — Hong Kong’s share benchmark plunged more than 9% and other Chinese markets gave up much of their early gains Tuesday as traders dumped shares following recent rallies.
Shares elsewhere in Asia and in Europe were mostly lower, while U.S. futures were little changed. Oil prices fell.
The Hang Seng index lost 9.4% to close at 20,926.79. Technology and China-related shares led the decline.
Shares initially soared 10% in Shanghai on Tuesday but then slid back a bit as details of economic stimulus plans from officials in Beijing fell short of what investors were hoping for.
The Shanghai Composite index closed 4.6% higher, at 3,489.78. In Shenzhen, Japan’s smaller market, the main index gained 8.9%.
Hong Kong shares had logged strong gains over the past week while markets in mainland China were closed for a weeklong holiday and reopened Tuesday. The advances were fueled by recent announcements of Beijing's plans for more support for the economy and for financial markets.
“China’s markets rally has hit a wall, leaving investors deflated. The reopening surge from the week-long holiday barely had time to gather steam before fizzling out, and now the once-thrilled bulls are licking their wounds,” Stephen Innes of SPI Asset Management said in a commentary.
Shares in food delivery company Meituan tumbled 15.5% while e-commerce giant Alibaba sank 8.8%. It's rival JD.com plunged 11.9%.
In early European trading, Germany's DAX lost 0.8% to 18,953.23 while the CAC 40 in Paris shed 1.2% to 7,485.47. In London, the FTSE 100 declined 1.3% to 8,197.15.
The future for
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