HK Shutdown Weighs On Property Stocks
Hong Kong stocks fluctuated after a record number of new coronavirus cases in the city prompted the government to extend social-distancing measures. The MSCI Hong Kong Index of equities exposed to the local economy fell as much as 1.5% before paring losses to 0.7% as of 2:47 p.m. local time. Wharf Real Estate Investment slid 5.9% to lead property stocks lower, while casino stocks dropped.
The latest virus outbreak in the Asian financial hub has exceeded the magnitude of its previous waves, a sign the worst may be yet to come in the pandemic. The resurgence in Hong Kong will be another blow to its economy, which is already undergoing one of its most challenging periods since the handover to Chinese rule in 1997.
The MSCI Hong Kong Index retreated 1.4% last week, its worst showing since May 22. Sentiment has been hurt by the damage the pandemic has done to the economy, a crackdown on individual freedoms and the end of the city’s special status with the U.S.
Swire Pacific Ltd. and Link Reit lost at least 1%, while Galaxy Entertainment Group Ltd. fell 3.5% as the worst performing casino share.