South Korean Investment Surge in Hong Kong

South Korean investors are pouring millions of dollars into Hong Kong’s stock market at levels not seen in three years, even as Asian markets count losses due to the US’s aggressive policies against China. Traders are looking for signs of hope while concerns over a potential US recession and tariff disputes grow in global equities.

According to data compiled by Bloomberg, South Korean investors purchased a net total of $189 million in Hong Kong equities last month. This buying spree has continued into March, setting up the largest two-month net purchase of Hong Kong stocks since early 2021.

The interest in Hong Kong equities marks a shift in sentiment since South Korean investors were net sellers earlier in the 2024 fiscal year. As reported by Cryptopolitan, the city’s benchmark Hang Seng Index has surged 18% this year, thanks to strong demand from Chinese investors, who set a record for Hong Kong stock purchases on Monday.

Asian Markets Slide on US Economic Fears

The sell-off in the US markets has affected Asia, with stock indexes across the region declining further during early trading hours on Tuesday.

> “Asian markets follow Wall Street’s weak lead with a broad-based decline across the region,” said Kyle Rodda, a senior economist at Capital.com in Melbourne. “Event risk is relatively limited today, with price action likely to reflect the recessionary risks building in the United States.”

The MSCI Asia Pacific Index fell as much as 2.1%, reaching a five-week low before recovering slightly to lose 1.5%. Japan’s Nikkei 225 dropped nearly 3% in early trading before slightly improving to a 0.6% drop.

South Korea’s KOSPI slipped up to 2%, and Taiwan’s TAIEX fell nearly 3% at one point. Australia’s S&P/ASX 200 dropped as much as 1.3%, while Hong Kong’s Hang Seng Index was down less than 1%.

Technology stocks led the declines across the continent. Japan’s Sony and Hitachi dropped more than 4.5% in early trading, while SoftBank fell 4.4%. Major companies like Taiwan Semiconductor Manufacturing Company (TSMC) and Apple supplier Foxconn declined more than 3%. In South Korea, Samsung Electronics saw its stock drop over 2%.

US Stocks Plunge, Losing Post-Trump Election Gains

Wall Street is facing serious challenges, experiencing significant declines that could be tied to concerns regarding Trump’s policies. Tuesday’s pre-market trading data revealed that the Nasdaq Composite suffered its worst single-day decline since September 2022.

The S&P 500 and Dow Jones Industrial Average also recorded over 2.5% losses. On Monday, the Dow crashed by 890 points, a 2.08% drop, while the S&P 500 fell 2.7%. The Nasdaq, heavily influenced by technology stocks, plunged by 4%, largely due to Tesla’s stock dropping over 15% in less than a day.

This latest downturn has wiped out all gains from the three major US stock indexes since Donald Trump won the presidential election in November last year, with market sentiment shaken by the US’s trade standoff with other nations, worsened by Trump’s tariff policies and growing recessionary fears.

According to CNN, Delta Air Lines revised its earnings forecast downward on Monday due to a “decline in consumer and corporate confidence,” indicating a weakening market optimism in America. Businesses could be holding back until the outcomes of Trump’s “transitional period” become clear.