Hong Kong’s Hang Seng Index plunged 4% at the opening on Monday following unrest in China as people rallied against its zero-Covid policy. Meanwhile, oil prices were trading near 2022 lows.
As of 9:32 BKK time on November 28, 2022, Hang Seng Index led Asian markets in losses, falling 3.37%, followed by Shanghai Composite with a loss of 1.51%. Japan’s Nikkei dropped 0.75%, Korea’s Kospi slipped 1.17% and Australia’s ASX200 dipped 0.45%.
Over the weekend, China’s central bank announced a cut to the amount of cash that banks must hold as reserves for the second time this year, which would result in releasing about 500 billion yuan ($69.8 billion) in long-term liquidity to support an economy damaged by surging Covid cases and a crumbling property sector.
The People’s Bank of China said in a statement on Friday that the reserve requirement ratio for most banks will be reduced by 25 basis points.
The move by China’s central bank came after significant government actions recently to buoy the economy.
Meanwhile, oil prices hovered around 2022 lows amid concerns over slowing demand from the world’s second-largest economy as the country is facing another Covid-19 outbreak, and its zero-Covid policy would hamper the economy.
The international benchmark Brent crude fell $1.96 or.34% to $81.67 per barrel. The West Texas Intermediate plunged $1.95 or 2.56% to $74.33 a barrel.