The Hong Kong stock market has closed lower now in three straight sessions, declining more than 770 points or 3.7 percent en route to a three-week closing low. The Hang Seng Index finished just above the 20,530-point plateau, and now investors figure to go hunting for bargains when the market kicks off trade on Tuesday.
The global forecast for the Asian markets is mixed with a slight upside bias, as investors are expected to go shopping after the bourses took heavy damage on Monday. The upside may be limited by concerns about the new government in Greece, which has vowed to end austerity measures and reject the terms of Greece-Troika bailout deal. The European and U.S. markets were mixed to higher, and the Asian bourses figure to follow suit.
The Hang Seng finished sharply lower on Monday with broadly based losses, although the exporters and retailers were hit especially hard.
For the day, the index plummeted 549.35 points or 2.61 percent to finish at 20,536.65 after trading between 20,477.86 and 20,674.45 on volume of 61.14 billion Hong Kong dollars.
Among the decliners, Cosco Pacific fell 5 percent, while Esprit Holdings tumbled 4.3 percent and Tencent plunged 4.9 percent.
The lead from Wall Street is cautiously optimistic as stocks showed a lack of direction on Monday, with traders expressing uncertainty about the situation in Europe following recent election results. Selling pressure remained relatively subdued, however, limiting the downside for the markets. The markets recovered from weakness in early trading but ended the day nearly flat.
The slow start reflected a negative reaction to election results in France and Greece, which some saw as a setback to the progress achieved thus far on the European debt crisis.
Francois Hollande won a run-off election against French President Nicolas Sarkozy and will become France's first Socialist president since 1995. Hollande has expressed significant opposition to using austerity measures to address the European debt crisis, arguing that the focus should be more on economic growth than cutting government spending.
Additionally, the results of Greek elections pointed to a hung parliament, with no single party getting adequate votes to form a government. Many Greek voters turned to anti-bailout parties.
Among individual stocks, Vertex Pharmaceuticals (VRTX) moved sharply higher after the biotech company released data showing that its cystic fibrosis combination therapy resulted in significant improvements in lung function. Shares of Tyson Foods (TSN) also jumped after the meat producer reported quarterly earnings that beat estimates.
Meanwhile, Cognizant Technology (CTSH) came under pressure after the information technology services provider reported first quarter earnings growth but lowered its full-year guidance. AIG (AIG) also closed in the red after the company said the Treasury has priced an offering of 163.9 million shares of its common stock at $30.50 per share.
The major averages eventually finished the session mixed, as the Dow fell 29.74 points or 0.2 percent to finish at 13,008.53, while the NASDAQ edged up 1.42 points or 0.1 percent to end at 2,957.76 and the S&P 500 crept up by 0.48 points or less than a tenth of a percent to 1,369.58.
In economic news, Hong Kong's official foreign currency reserve assets totaled $295.6 billion at the end of April, up from $294.6 billion in March, the Hong Kong Monetary Authority said on Monday. The total foreign currency reserve assets of $295.6 billion represent over eight times the currency in circulation or about 55 percent of Hong Kong dollar M3.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.