Hong Kong share market finished session at the lowest level in more than five years on Monday, 07 March 2022, as investors unloaded a wide range of shares after data showed the China's export growth slowed in the January-February period. Meanwhile, selloff pressure intensified in the wake of an escalating Russia-Ukraine conflict and mounting sanctions against Moscow.
Local stocks also plunged as Hong Kong continued to record a big surge in Covid-19 infections, with the death rate hitting the highest worldwide. China on Sunday also reported the highest daily infections since the first outbreak in Wuhan in 2019.
At closing bell, the benchmark Hang Seng Index stumbled 3.87%, or 847.66 points, to 21,057.63, the lowest level since July 2016. The Hang Seng China Enterprises Index fell 3.57%, or 274.28 points, to 7,412.59.
Russia's invasion of Ukraine has triggered sweeping Western-led sanctions aimed at crippling the Russian economy. The United States and its European partners are actively considering the banning of Russian oil imports in the wake of Moscow's onslaught in Ukraine.
The threat of a potential ban on Russian oil imports spurred a surge in energy prices that investors worry could smother economic growth. Crude oil prices soared, with global benchmark Brent crude jumping 5.7% to $124.87 a barrel.
Earlier Monday, it topped $130, the highest level since July 2008. The U. S. equivalent, West Texas Intermediate, rose 5.8% to $122.46.
The war in Ukraine, now in its 12th day, has roiled commodity markets, increased tensions between Moscow and the West and led to Russia being unplugged from much of the global financial system.
Market participants are monitoring developments regarding the third round of talks between representatives of Ukraine and Russia, expected to take place later Monday, although hopes for a cease-fire remain low.
Fifty-seven of the 66 Hang Seng Index members dropped. Meituan, WuXi Biologics and Haidilao plunged by at least 9%. Some 393 stocks, or almost a fifth of the companies trading in the city, fell to their 52-week lows, including Alibaba Group Holding, Tencent to Meituan, Bilibili and XPeng.
Water-bottling firm Nongfu Spring tumbled 7.4% while PC maker Lenovo Group lost 3%. Both stocks became the Hang Seng Index constituents from Monday following a quarterly review last month.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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