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World shares mixed, Hang Seng index plunges 5.4%

written by Bella Palmer

DJIA advanced 0.7%, S&P 500 rose 0.5%, Hang Seng slipped 5.4%, Shanghai Composite index shed 2.6%, Nikkei 225 added 0.6%, S&P/ASX 200 rose 1.2% and Kospi declined 0.6%

World shares were mixed Monday while Hong Kong’s Hang Seng index plunged 5.4% after the neighbouring city of Shenzhen was ordered into a shutdown to combat China’s worst COVID-19 outbreak in two years.

Benchmarks rose in Frankfurt, Paris and Tokyo and U.S. futures were higher. Oil prices retreated against the backdrop of uncertainty from the war in Ukraine.

Germany's DAX gained 1.8% to 13,879.27, while the CAC 40 in Paris added 0.6% to 6,293.04. Britain's FTSE 100 was almost unchanged at 7,152.08.

The future for the Dow Jones Industrial Average advanced 0.7%, auguring a positive start for the week's trading. The S&P 500 future was 0.5% higher.

The spreading virus outbreaks in China are compounding worries over supply chain disruptions both from the pandemic and from the war.

A vital manufacturing and technology hub of 17.5 million people, Shenzhen is home to some of China’s most prominent companies, including telecom equipment maker Huawei Technologies Ltd., electric car brand BYD Auto, Ping An Insurance Co. and Tencent Holding, operator of the popular WeChat message service.

The Hang Seng index slipped 5.4% but regained some lost ground to close 5% lower at 19,531.66. The exchange's tech index dropped 11%.

The Shanghai Composite index shed 2.6% to 3,223.53. The A-share index in Shenzhen's smaller market lost 2.9%.

In other Asian markets, Tokyo’s Nikkei 225 index added 0.6% to 25,307.85 and the S&P/ASX 200 in Australia rose 1.2% to 7,149.40. South Korea’s Kospi declined 0.6% to 2,645.65.

The Ukraine crisis and central bank efforts to fight inflation remain the focus for most markets.

World markets have been rocked by dramatic reversals as investors struggle to guess how Russia's invasion of Ukraine will affect prices of oil, wheat and other commodities produced in the region.


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