December 9, 2022

Raven Tribune

Complete News World

Live news updates: Sterling swings as markets react to Johnson's withdrawal

Live news updates: Sterling swings as markets react to Johnson’s withdrawal

The Hang Seng is down 5.1% in morning trade, while the CSI 300 is down 2% © Jérôme Favre / EPA-EFE / Shutterstock

Shares listed in Hong Kong and China fell sharply on Monday, as delays in the release of the country’s gross domestic product data soured markets.

The Hang Seng Index is down 5.1 percent in morning trading, while the CSI 300 Index of shares listed in Shanghai and Shenzhen is down 2 percent.

The declines followed the unscheduled release of China’s GDP numbers and other economic data, which beat expectations for a 3.9 percent expansion, but still posted much slower growth than the country has been used to in recent decades.

Tensions were exacerbated by delays in the release of the data, which was originally scheduled for last Tuesday. The figures were released without warning after China’s historic 20th Party Congress, at which leader Xi Jinping secured an unprecedented third term in the country’s most important political roles.

Xi showed little willingness to change course from his strict non-proliferation policy during the conference. This policy, which seeks to stamp out virus cases with a strict lockdown, has undermined China’s growth prospects this year.

“This is panic selling,” said Dickie Wong, head of research at Kingston Securities in Hong Kong. “It is quite clear that investors are not confident about the future of the Chinese economy.”

In other markets, Japan’s Topix rose 0.4 percent, and South Korea’s Kospi gained 0.9 percent. The moves followed sharp increases in the US on Friday, where the S&P 500 and Nasdaq Composite both rose more than 2 percent after a report that the Federal Reserve may slow the pace of interest rate hikes from December.

Oil prices fell after early gains, with Brent crude, the international benchmark, down 0.5 percent to trade at $93.03 a barrel, and the US West Texas Intermediate index fell by the same margin to $84.60.

See also  US stocks mixed after Putin claimed progress in Ukraine talks