Asian markets decline; Cathay Pacific continues its fall

CNN Wire

Asian stocks declined Tuesday amid rising geopolitical tensions.

Hong Kong’s Hang Seng Index tumbled 1%. Intensifying protests forced the closure of the city’s international airport on Monday, deepening fears about the future of the city’s economy.

Elsewhere, Cathay Pacific Group dropped 4% in early trading in Hong Kong following a 4.9% decline on Monday.

The city’s flagship airline has been affected by mass protests. Over the weekend, Cathay said it would cooperate with a directive from China’s aviation authority banning staff from flying to, from and over mainland China if they participate in or support the protests in the city.

Hong Kong’s Financial Secretary Paul Chan warned last week that the risk of recession is rising in the city.

China’s Shanghai Composite Index lost 0.5%.

Japan’s Nikkei 225 declined 1.2% in early trading. South Korea’s Kospi dropped 0.6%.

Singapore’s STI index fell 0.9% after Singapore slashed its full-year forecast for GDP growth to between 0% and 1%. Previously it predicted the economy to grow by 1.5% to 2.5%.

Australia’s S&P/ASX 200 dipped 0.3%.

The People’s Bank of China guided the the yuan lower for a ninth straight session, at 7.0326 to one US dollar. The currency was flat in onshore trading, while inching higher in the offshore market, where the yuan moves more freely.

Here are some other big moves at 10:30 a.m. Hong Kong time:

  • Argentina’s stocks and currency plunged after a surprise outcome of the country’s primary election triggered fears that populists could replace the country’s current, business-friendly government.
  • US markets closed lower Monday on trade war fears. The Dow dropped about 390 points, or 1.5%. The S&P 500 and Nasdaq lost 1.2% apiece.

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