Hong Kong stocks drop as IMF flags deep global recession

Shenzhou International group

15/04/2020 10:00

* Hang Seng index ends down 1.19%
    * China Enterprises index HSCE falls 1.25% 
    * IMF says HK economy to contract 4.8% in 2020

    BEIJING/SHANGHAI, April 15 (Reuters) - Hong Kong's benchmark
share index ended lower on Wednesday as forecast of a deep
recession this year by the International Monetary Fund
outweighed a monetary stimulus from China's central bank.
** At the close of trade, the Hang Seng index  .HSI  was down
290.06 points, or 1.19%, at 24,145.34. The Hang Seng China
Enterprises index  .HSCE  fell 1.25% to 9,724.7.
** The sub-index of the Hang Seng tracking energy shares
 .HSCIE  dipped 3.8%, while the IT sector  .HSCIIT  rose 0.32%,
the financial sector  .HSNF  ended  1.37% lower and the property
sector dipped 1.52%.
** The coronavirus pandemic is expected to lead to the worst
global recession since the 1930s, the International Monetary
Fund said on Tuesday, with Hong Kong's economy likely to shrink
by 4.8% this year.
** Worries over the economic outlook outweighed a move by
China's central bank to combat the economic fallout from the
coronavirus health crisis. 
** The People's Bank of China on Wednesday cut the interest rate
on its medium-term lending facility (MLF) for financial
institutions by 20 basis points to 2.95%, a record low, in an
attempt . More easing is widely expected to help struggling
companies get back on their feet.  urn:newsml:reuters.com:*:nB9N2BD01T
** The top gainer on the Hang Seng was Shenzhou International
Group Holdings Ltd  2313.HK , which added 2.81%, while the
biggest loser was CNOOC Ltd  0883.HK , which fell 5.18%.
** China's main Shanghai Composite index  .SSEC  closed down
0.57% at 2,811.17 points, while the blue-chip CSI300 index
 .CSI300  ended down 0.74%. 
** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was weaker by 0.47%, while Japan's Nikkei index
 .N225  closed down 0.45%.
** The yuan  CNY=CFXS  was quoted at 7.0632 per U.S. dollar at
08:22 GMT, 0.26% weaker than the previous close of 7.0452.

 (Reporting by Cheng Leng in Beijing and Andrew Galbraith in
Shanghai; Editing by Ramakrishnan M.)
 ((cheng.leng@thomsonreuters.com ; +8610-5669-2129;))