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Hong Kong stocks slide to one-year low as Omicron variant alarms markets while Meituan, Macau casinos add to rout
- Investors suffered a triple whammy of Omicron infections, Meituan’s poor earning and Macau gambling crackdown
- New Covid variant threatened to disrupt global economies after governments imposed new lockdowns and banned related travels
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Hong Kong stocks fell to more than a one-year low on concerns the spread of Omicron coronavirus strain will prompt more lockdowns and hurt economic recovery. Meituan slumped on weak earnings while a gambling crackdown in Macau hit casino concessionaires.
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The Hang Seng Index retreated 0.9 per cent to 23,859.50 at the close of Monday trading, the lowest level since October 5, 2020. The Hang Seng Tech Index declined 0.8 per cent, while China’s Shanghai Composite Index was little changed.
Global markets sold off after the World Health Organization labelled the new Covid strain Omicron as a “variant of concern.” New cases have spread in Europe, prompting the UK, US and some European governments to ban related travels. Hong Kong recorded two such cases last week, while another was confirmed on Monday.
Global markets sold off after the World Health Organization labelled the new Covid strain Omicron as a “variant of concern.” New cases have spread in Europe, prompting the UK, US and some European governments to ban related travels. Hong Kong recorded two such cases last week, while another was confirmed on Monday.
“Investors for some months have been pricing in a smooth path to recovery and the Omicron variant poses a new challenge to this constructive view,” said Tai Hui, Asia chief market strategist at JPMorgan Asset Management. “Market pressure could remain until medical experts and researchers have a better understanding of the virus.”
Research by Italian scientists showed the Omicron had 43 spike protein mutations, a far higher rate of mutation compared to 18 for the Delta variant. The city’s benchmark slumped 16.6 per cent since Hong Kong’s first recorded Delta case in late June.
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UK bans travel from South Africa after emergence of new heavily-mutated Covid-19 variant
UK bans travel from South Africa after emergence of new heavily-mutated Covid-19 variant
Last week’s discovery of the new strain sparked global concern and border closures amid fears it is highly infectious, even as South Africa, where it was first discovered, said the variant had “mild” symptoms so far.
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