Hong Kong stocks tumble on Trump election triumph

 09 Nov 2016 - 11:32

Hong Kong stocks tumble on Trump election triumph

Reuters

SHANGHAI: Hong Kong stocks touched a 3-month low on Wednesday, losing early gains to tumble over 2 percent as investors fled risky assets as Republican Donald Trump claimed a shock victory in the U.S. presidential election.

The Hang Seng index fell 2.2 percent, to 22,415.19, while the Hong Kong China Enterprises Index lost 2.9 percent, to 9,378.66 points.

Reflecting rising investor anxiety, the HSI Volatility Index , a measure of market stress, shot to a fresh high of nearly 26 at one point, the highest level since the Brexit vote in June.

Trump, who has stoked uncertainty over his stance on foreign policy, trade and immigration, rattled world markets that had expected Democrat Hillary Clinton to defeat the political outsider.

Many investors drew comparisons with the Brexit vote, when Hong Kong stocks tumbled nearly 5 percent as Britain's referendum decision to leave the European Union took investors by surprise.

Shares fell across the board in Hong Kong while sovereign bonds and gold rallied, as investors dumped stocks and sought safe haven assets.