Hong Kong Market tumbles on dismal economic outlook

Hong Kong share market finished session down on Thursday, 01 September 2022, on tracking weak global markets amid grim global economic outlook, after several Federal Reserve and European Central Bank officials reiterated their support for further interest-rate hikes to combat inflation. Meanwhile, selloff pressure intensified after latest survey showed global factory output slowed in August.

At closing bell, the benchmark Hang Seng Index dropped 357.08 points, or 1.79%, to 19,597.31. The Hang Seng China Enterprises Index was down 123.08 points, or 1.79%, to 6,742.04.

Purchasing managers' indexes from South Korea, Japan and China all pointed to slowing global economic activity as stubborn inflation, rising interest rates and the war in Ukraine took a heavy toll.

The China's manufacturing sector slipped into contraction for the first time in three months in August as Covid infections, the worst heatwaves in decades and an embattled property sector weighed on production, suggesting the economy will struggle to sustain momentum.

Hong Kong shares fell across the board, with consumer and industrial firms leading the losses.

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