Hong Kong stocks opened with some gains on Tuesday but ended down in the afternoon, as any initial enthusiasm disappeared as world’s financial leaders have so far provided no answers to deal with the economic impact of the novel coronavirus outbreak.
The benchmark Hang Seng Index rallied in the morning session, following overnight gains on Wall Street. It started the day with 127 points higher and soon reached an intra-day high of 26,527.75. The HSI narrowed its early gains in the afternoon and ended Tuesday at 26,284.82, down 6.86 points or 0.03 percent.
More than 360 exhibitions have to be canceled or delayed worldwide
Benjamin Chau Kai-leung, deputy executive director of the Hong Kong Trade Development Council
The morning’s rebound was fueled by a US Treasury announcement on Monday that prime ministers and central bank governors from the Group of Seven will have a teleconference to discuss measures to deal with the economic impact of the novel coronavirus outbreak Tuesday night, Hong Kong time.
However, a Reuters report in the afternoon dampened the enthusiasm of optimistic traders, which says that a draft of the G-7 statement does not include detail fiscal and monetary steps to cope with the impact of the disease. It cited an official, with direct knowledge of the discussions, who said they are not yet making specific calls for new government spending or central bank rate cuts.
The epidemic has expanded rapidly worldwide, with infections topping 90,000 in more than 60 countries. More than 360 exhibitions have to be canceled or delayed worldwide, Benjamin Chau Kai-leung, deputy executive director of the Hong Kong Trade Development Council (HKTDC), told the media on Tuesday.
He said many international buyers have been prevented from coming to Hong Kong to make purchases. They traditionally come in March and April.
Chau encouraged small and medium-sized enterprises to promote their products online. He said the council will provide some e-commerce services to help them.
A total of 13 exhibitions which are normally held in February, March and April have to be rescheduled between May and August, explained Chau. The Hong Kong International Jewellery Show has been postponed until May.
The HKTDC has canceled all exhibitions and fairs in the city, Chau added.
