FX.co ★ Hang Seng Tumbles the Most Since 2008, Closes Below the 20,000 Mark

On Monday, the Hang Seng Index plummeted by 3,021 points, equivalent to a 13.2% decline, marking its most significant one-day fall since 2008. The index closed at 19,828, dipping below the 20,000 level. This marked the second consecutive day of intense selling, pushing the index to its lowest point in over two months, as sectors including technology, consumer goods, and financials experienced significant losses, with many companies suffering double-digit percentage drops. The decline was triggered by heightened trade tensions; the White House maintained its stance on tariffs, and China announced retaliatory tariffs on U.S. products. President Trump stated that the markets would need to endure the repercussions, affirming that a resolution would not occur until the U.S. trade deficit was addressed. Meanwhile, concerns over a potential recession led to a downturn in U.S. futures. However, losses were somewhat tempered by reports from Bloomberg News suggesting that China might reduce borrowing costs and the reserve requirement ratio (RRR), alongside efforts by policymakers to accelerate stimulus measures aimed at boosting consumption. Notable declines in stock prices were seen in companies such as Pop Mart (-22.9%), Prada Spa (-14.7%), CK Hutchison (-8.9%), Xiaomi (-21.1%), Semiconductor Manufacturing (-17.7%), Meituan (-15.4%), and Tencent (-13.3%).