Recently, shares in the Asia Pacific were compounded after an overnight dropdown on Wall Street. In Hong Kong, Hang Seng index closed partly lower at 27,294.71 in the middle of uncertainty, 1 Day after aggressive clashes amid protesters and police for a controversial extradition bill. Binay Chandgothia—Portfolio Manager and Managing Director at Principal Global Investors—said to CNBC, “You already have major political risk premium implanted into Hong Kong equities owing to the trade impacts that are continuing and Hong Kong is the doorway to China. So the viewpoint for China has taken a blow in the last month or so. Adding to that the odds that something wrong can happen in terms of the current protests. Then you can observe Hong Kong equities getting cheaper.”
Chandgothia added that assessment levels in the Hong Kong markets are “quite attractive” at present. Chinese stocks were higher, with the Shanghai Composite climbing to 2,910.74 and the Shenzhen Component surging fractionally to 8,951.61. The Shenzhen Composite also gained 0.287% to 1,532.79. In Japan, Nikkei 225 collapsed by 0.46% to end at 21,032.00, as shares of Apple provider Japan Display plunged by 11.94% following the company declared new restructuring intends, with the company’s CEO and president set to step down. The Topix index decrease by 0.82% to close at 1,541.50. In South Korea, the Kospi crashed by 0.27% to end at 2,103.15 as shares of chip manufacturer SK Hynix declined by 3.35%. In Australia, the ASX 200 finished its trading day flat at 6,542.40.
On a similar note, in the last week, the protests began but escalated in the mid-week when police and demonstrators conflicted for hours. Hong Kong citizens disapproved Chief Executive Carrie Lam’s planned legal amendments that will allow people in Hong Kong to be transferred to mainland China. The demonstrators had assembled in the city’s legislature as policymakers were scheduled to deliberate the controversial extradition proposal but they finally could not due to the disruption caused by the protest.