Tag Archives: Hong Kong

China GDP: Hong Kong stocks plunge 6% as fears about Xi’s third term trump data


Hong Kong
CNN Business
 — 

Hong Kong stocks had their worst day since the 2008 global financial crisis, just a day after Chinese leader Xi Jinping secured his iron grip on power at a major political gathering.

Foreign investors spooked by the outcome of the Communist Party’s leadership reshuffle dumped Chinese equities and the yuan despite the release of stronger-than-expected GDP data. They’re worried that Xi’s tightening grip on power will lead to the continuation of Beijing’s existing policies and further dent the economy.

Hong Kong’s benchmark Hang Seng

(HSI) Index plunged 6.4% on Monday, marking its biggest daily drop since November 2008. The index closed at its lowest level since April 2009.

The Chinese yuan weakened sharply, hitting a fresh 14-year low against the US dollar on the onshore market. On the offshore market, where it can trade more freely, the currency tumbled 0.8%, hovering near its weakest level on record, even as the Chinese economy grew 3.9% in the third quarter from a year ago, according to the National Bureau of Statistics. Economists polled by Reuters had expected growth of 3.4%.

The sharp sell-off came one day after the ruling Communist Party unveiled its new leadership for the next five years. In addition to securing an unprecedented third term as party chief, Xi packed his new leadership team with staunch loyalists.

A number of senior officials who have backed market reforms and opening up the economy were missing from the new top team, stirring concerns about the future direction of the country and its relations with the United States. Those pushed aside included Premier Li Keqiang, Vice Premier Liu He, and central bank governor Yi Gang.

“It appears that the leadership reshuffle spooked foreign investors to offload their Chinese investment, sparking heavy sell-offs in Hong Kong-listed Chinese equities,” said Ken Cheung, chief Asian forex strategist at Mizuho bank.

The GDP data marked a pick-up from the 0.4% increase in the second quarter, when China’s economy was battered by widespread Covid lockdowns. Shanghai, the nation’s financial center and a key global trade hub, was shut down for two months in April and May. But the growth rate was still below the annual official target that the government set earlier this year.

“The outlook remains gloomy,” said Julian Evans-Pritchard, senior China economist for Capital Economics, in a research report on Monday.

“There is no prospect of China lifting its zero-Covid policy in the near future, and we don’t expect any meaningful relaxation before 2024,” he added.

Coupled with a further weakening in the global economy and a persistent slump in China’s real estate, all the headwinds will continue to pressure the Chinese economy, he said.

Evans-Pritchard expected China’s official GDP to grow by only 2.5% this year and by 3.5% in 2023.

Monday’s GDP data were initially scheduled for release on October 18 during the Chinese Communist Party’s congress, but were postponed without explanation.

The possibility that policies such as zero-Covid, which has resulted in sweeping lockdowns to contain the virus, and “Common Prosperity” — Xi’s bid to redistribute wealth — could be escalated was causing concern, Cheung said.

“With the Politburo Standing Committee composed of President Xi’s close allies, market participants read the implications as President Xi’s power consolidation and the policy continuation,” he added.

Mitul Kotecha, head of emerging markets strategy at TD Securities, also pointed out that the disappearance of pro-reform officials from the new leadership bodes ill for the future of China’s private sector.

“The departure of perceived pro-stimulus officials and reformers from the Politburo Standing Committee and replacement with allies of Xi, suggests that ‘Common Prosperity’ will be the overriding push of officials,” Kotecha said.

Under the banner of the “Common Prosperity” campaign, Beijing launched a sweeping crackdown on the country’s private enterprise, which shook almost every industry to its core.

“The [market] reaction in our view is consistent with the reduced prospects of significant stimulus or changes to zero-Covid policy. Overall, prospects of a re-acceleration of growth are limited,” Kotecha said.

On the tightly controlled domestic market in China, the benchmark Shanghai Composite Index dropped 2%. The tech-heavy Shenzhen Component Index lost 2.1%.

The Hang Seng Tech Index, which tracks the 30 largest technology firms listed in Hong Kong, plunged 9.7%.

Shares of Alibaba

(BABA) and Tencent

(TCEHY) — the crown jewels of China’s technology sector — both plummeted more than 11%, wiping a combined $54 billion off their stock market value.

The sell-off spilled over into the United States as well. Shares of Alibaba and several other leading Chinese stocks trading in New York, such as EV companies Nio

(NIO) and Xpeng, Alibaba rivals JD.com

(JD) and Pinduoduo

(PDD) and search engine Baidu

(BIDU), were all down sharply.

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Sanctioned Russian oligarch’s $500 million superyacht leaves Hong Kong for Cape Town

A luxury yacht belonging to sanctioned Russian oligarch Alexey Mordashov departed Hong Kong waters on Thursday heading for the South African port of Cape Town, according to private tracking site MarineTraffic.

The prominent sight of the 465 foot (141-meter) multi-deck Nord in the city’s Victoria harbor in recent weeks had sparked criticism from the US State Department, which questioned the “transparency” of the financial hub and warned of reputational risks.

Mordashov, a billionaire close to President Vladimir Putin, was among a number of Russians sanctioned by the United States and European Union – but not the United Nations – after Russia’s invasion of Ukraine for their links to Putin.

While a number of Russian superyachts have been seized or denied entry in Europe and other jurisdictions, the Nord was left undisturbed in Hong Kong after its arrival on Oct. 5.

Valued at over $500 million, it arrived via a seven-day voyage from Vladivostok in Russian Far East, down through the Sea of Japan and the East China Sea.

The Hong Kong Marine Department later confirmed that the Nord had departed Hong Kong on Thursday but said it could not comment further.

The MarineTraffic site put the vessel southeast of Hong Kong waters early on Thursday evening, heading into the South China Sea.

A witness saw a fuel barge alongside the vessel inside the harbor at noon.

Hong Kong’s leader John Lee said on Oct. 11 the city’s authorities would not act on unilateral sanctions imposed on Mordashov by individual jurisdictions.

“We cannot do anything that has no legal basis,” said Lee, who himself has been sanctioned by the US for his role on a crackdown on local freedoms.

Lee, who is due to host an international investment summit in November with global business leaders, said the Chinese-ruled city would only abide by United Nations sanctions.

Sanctions target Russian Oligarch yachts


06:55

– Source:
CNN

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Manchester: Chinese consulate says pulling hair of Hong Kong protester was ‘my duty’


Hong Kong
CNN
 — 

A Chinese diplomat who was filmed pulling the hair of a Hong Kong pro-democracy protester on the grounds of his consulate in Manchester, England, has defended his actions – saying it was his “duty” to maintain China’s dignity.

“Any diplomat” would have done the same, Chinese Consul-General Zheng Xiyuan said on Wednesday when asked about video footage that has emerged of a group of men assaulting the protester.

The confrontation took place on Sunday, when a group of pro-democracy protesters turned up to the consulate with banners featuring satirical images of Chinese leader Xi Jinping. The demonstration coincided with the start of a key week-long meeting of the Chinese Communist Party elites in Beijing, at which Xi is widely expected to secure a norm-breaking third term as leader.

Video footage shows one of the pro-democracy protesters – since identified as Bob Chan – being dragged through the gate into the consulate grounds and being beaten by the group of men. It also shows Manchester police entering the consulate grounds to break up the violence.

In an interview with Sky News on Wednesday, Zheng defended his actions and those of his staff, claiming the pro-democracy protesters had incited the violence with “rude banners.”

“I didn’t beat anybody. I didn’t let my people beat anybody. The fact is, the so-called protesters beat my people,” Zheng said.

However, when the Sky News interviewer asked about an image showing him pulling Chan’s hair, Zheng seemed to concede he had been involved, saying: “Yeah, the man abused my country, my leader. I think it’s my duty.”

“To pull his hair?” the interviewer asked – to which Zheng responded, “Yeah!”

He added that he was maintaining the dignity of China and its people, and that “any diplomat” would have done the same in such a situation.

In a letter to Manchester police on Thursday, Zheng insisted the consulate had been “respectful of the right to protest,” and claimed that the consular grounds had been “stormed” by protesters.

China’s Foreign Ministry has been quick to defend Zheng, describing the protesters as “harassers” who had illegally entered the Chinese consulate, “endangering the security of Chinese diplomatic premises.”

The incident now threatens to further damage UK-China relations, which have soured in recent years with disagreements over Hong Kong, a former British colony, a major point of contention.

On Tuesday, Britain’s foreign secretary summoned China’s second-most senior diplomat in the UK, Charge D’Affaires Yang Xiaoguang, to demand an explanation and express deep concern at the incident.

Manchester police have launched an investigation into the assault, but said on Wednesday that there had been no arrests so far, calling it a “complex and sensitive inquiry” that will take time.

Speaking publicly at a news conference Wednesday, Bob Chan said he now feared for his safety, and that of his family – echoing fears voiced by other members of Britain’s Hong Kong diaspora.

He claimed he had been trying to stop consular staff from ripping down protest banners when they began to assault him.

“I held onto the gate where I was kicked and punched. I could not hold on for long and was eventually pulled into the grounds of the consulate,” Chan said.

“My hair was pulled and I felt punches and kicks from several men,” he said, adding the assault did not stop until a police officer pulled him back out through the consulate gate.

He showed photos of his injuries, saying he had bruises on his head, neck, back and around his eye. “I fear I may be silenced by the powers that be. I fear for the safety of my family,” he continued. “I’m shocked because I never thought something like this could happen in the UK.”

Britain is home to a large number of Hong Kongers, many of whom left the city after Beijing introduced a sweeping national security law in 2020. Under the law, protesters and activists have been jailed, newsrooms shut, civic society dismantled and formal political opposition effectively wiped out.

Hong Kong leaders have repeatedly claimed that the city’s freedoms remain intact, and that the law has restored order and stability after massive pro-democracy protests in 2019.

But the combination of China’s tightening grip on the city and its stringent Covid-19 restrictions have prompted an exodus from the city in recent years.

In August, Hong Kong logged its biggest population drop since official records began in 1961.

As the size of the Hong Kong diaspora has grown, and Beijing has become more assertive on the world stage, the UK-China relationship has also deteriorated – with British public sentiment souring as well, experts say.

“The Manchester incident reflected the hardening of UK attitudes toward China since the 2019 protests in Hong Kong and the resultant cooling of UK-China relations,” said Chi-kwan Mark, a senior lecturer in international history at the University of London, adding that it partly reflected “the intensified ideological clash between China and the West.”

And it has become a bipartisan issue, with members of both Britain’s Conservative and Labour parties supporting “a hard-line approach to China,” he said.

In remarks to the UK’s House of Commons on Tuesday, Conservative lawmaker Alicia Kearns called the incident “a chilling escalation,” a sentiment echoed by Labour lawmaker Afzal Khan, who said: “The aggressive, intimidating tactics of the Chinese Communist Party have no place on the streets of my city or my country.”

“The British government … is under pressure to do something concerning China, and to stand up for Hong Kong,” Mark said – though he added that those authorities are now in the difficult position of having to “strike a balance between confrontation and engagement with China.”

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Hong Kong leader on new property measures, attracting foreign talent

John Lee, Hong Kong’s chief executive, arrives to deliver his policy address at the Legislative Council in Hong Kong on Oct. 19, 2022.

Paul Yeung | Bloomberg | Getty Images

Hong Kong Chief Executive John Lee on Wednesday announced plans to attract talent and investment to the Asian financial hub which has lost thousands of residents since the pandemic started.

In his first policy address since taking office in July, Lee said the government will set aside 30 billion Hong Kong dollars ($3.8 billion) to attract businesses to the city, and launch a so-called top talent pass scheme to “entice talents to pursue their careers in Hong Kong.”

“Over the past two years, the local workforce shrank by about 140,000. Apart from actively nurturing and retaining local talents, the government will proactively trawl the world for talents,” according to an official transcript of his speech.

Hong Kong’s Hang Seng index advanced slightly in early trade but gave up gains ahead of the speech. It last traded 1.9% lower after briefly falling 2%.

Attracting foreign talent

People who earn an annual salary of around $318,000 or more, and graduates from the world’s top 100 universities who have three years of work experience over the past five years, will be eligible for a two-year pass “for exploring opportunities in Hong Kong.”

Foreigners who enter Hong Kong under talent attraction schemes, buy a residential property and become permanent residents will be able to apply for a refund of buyer’s stamp duty and new residential stamp duty for their first property, Lee said.

“The arrangement applies to any sale and purchase agreement entered from today” and thereafter, he added.

Hong Kong’s housing prices have seen quarterly declines since the third quarter of last year, according to the Rating and Valuation Department.

Housing crisis

Hong Kong’s housing shortage has been a long-standing problem for the city and “solving the housing problem tops the agenda” of the government, Lee said in his almost three-hour speech.

The chief executive said his administration is targeting to increase overall public housing supply. The government will also aim to limit the waiting time for public rental housing to 4.5 years, down from 6 years at the moment.

Shares of Hong Kong-listed real estate companies gave up earlier gains as Lee spoke. It was a mixed bag after the lunch break — China Overseas Land and Investment was up 2% and CK Asset was 0.77% higher. Country Garden added 0.71% while Sino Land lost 0.4%.

Asian financial hub

Lee also announced measures aimed at enhancing Hong Kong’s competitiveness as a financial center, including making it easier for some companies to list in the city.

Stock exchange operator Hong Kong Exchanges and Clearing will revise the listing rules for its main board next year “to facilitate fundraising of advanced technology enterprises that have yet to meet the profit and trading record requirements,” he said.

The government will also develop the tech sector.

“Our goal is to attract not less than 100 high-potential or representative [innovation and technology] enterprises to set up or expand their businesses in Hong Kong in the coming five years,” he said, adding that it could bring in HK$10 billion of investment and create job opportunities.

Covid policy

In terms of Covid policies, Lee said his government is “making our best efforts to discuss with the Mainland to strive for resuming normal cross-boundary travel in a gradual and orderly manner.”

“Our first target is to implement ‘reverse quarantine’ in Hong Kong, also known as ‘pre-departure quarantine,'” where travelers quarantine in Hong Kong before going into the mainland.

Hong Kong was a British colony before it was handed to China in 1997 to be governed under a “one country, two systems” framework. Hong Kong was promised autonomy for 50 years and has freedoms that other Chinese cities do not have, including limited election rights.

Hong Kong lifted mandatory quarantines for travelers last month, after around two years of Covid-related border control measures. Travelers still need to take multiple Covid tests and monitor their health upon arrival.

Lee, a Beijing loyalist, was the only candidate in the election in May to replace his predecessor Carrie Lam. Around 1,500 members of a largely pro-Beijing election committee voted, and Lee won 1,416 votes to become Hong Kong’s top leader.

CNBC’s Jihye Lee and Lee Ying Shan contributed to this report.

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Hong Kong’s largest IPOs for 2022 Onewo and Leapmotor trading debut

A gong inside the Hong Kong Stock Exchange. China Vanke’s subsidiary Onewo and EV maker Zhejiang Leapmotor Technology began trading on the Hong Kong market on Thursday.

Paul Yeung | Bloomberg | Getty Images

Leapmotor and Onewo, among Hong Kong’s largest completed initial public offerings of the year, dropped on their first day of trade in the city on Thursday.

Chinese electric vehicle maker Leapmotor’s shares tumbled as much as 32% from its offer price of 48 Hong Kong dollars ($6.11) per share. It last traded 27.7% lower.

Shares of Onewo fell 7.9% from its offer price of 49.35 Hong Kong dollars ($6.29) per share in early trade, and was last 4.76% lower.

The moves come after the companies’ shares reportedly fell in grey market trading the previous day.

The broader Hang Seng index was last up 1.49%.

The retail tranche of shares for both initial public offerings were undersubscribed, according to their respective filings. Around 82% of Onewo’s shares for the local market were bought, and only 16% of Leapmotor were purchased, the filings said.

Unsold shares were allocated to international buyers.

Onewo, a subsidiary of property developer China Vanke, raised 5.6 billion Hong Kong dollars ($713.5 million), while Leapmotor raised 6.06 billion Hong Kong dollars ($771.7 million).

Data from the Hong Kong Exchange (HKEX) show there were 48 new listings in Hong Kong from January to August in 2022, raising a total of 56 billion Hong Kong dollars ($7.1 billion) – a steep drop from the same period in 2021, in which there were 69 new listings that raised 271.4 billion Hong Kong dollars ($34.6 billion).

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Hong Kong court finds five guilty of sedition over sheep books | Politics News

The five will be sentenced on Saturday and face as long as two years in prison for publishing books that sought to explain the democracy movement to children.

A Hong Kong court has found five speech therapists guilty of sedition over a series of illustrated children’s books that portrayed the city’s democracy supporters as sheep defending their village from wolves.

Prosecutors alleged the three picture books, which sought to explain Hong Kong’s pro-democracy movement to youngsters, spread “separatism”, and stirred up ‘”hatred” and opposition to the government.

Lorie Lai, Melody Yeung, Sidney Ng, Samuel Chan and Marco Fong, aged between 25 and 28 and all members of a speech therapists union, had pleaded not guilty.

They chose not to testify during the trial or summon any witnesses when proceedings began in July.

Their lawyers argued that the sedition offence was vaguely defined and that each reader should be allowed to make up their own mind about what the characters in the books represent.

They also warned that a guilty verdict would further criminalise political criticism and have a chilling effect on society.

It is the first time that the case of a seditious publication has gone to trial since the protests that rocked the territory in 2019 and Beijing’s imposition of a national security law the following year. The sedition law, which dates from colonial times, had not been used since 1967 before it was revived in the wake of the mass protests.

The charges relate to three books aimed at children aged between four and seven years old: The Guardians of Sheep Village, The 12 Heroes of Sheep Village, and The Garbage Collectors of Sheep Village.

Their plots relate to several real-life events, including the 2019 protests, a failed attempt by a group of 12 protesters to flee to Taiwan by speedboat, and a strike by medical workers at the start of the COVID-19 pandemic calling for Hong Kong to seal its border with China.

In a written summary released on Wednesday, District Court Judge Kwok Wai Kin said all three books were seditious, not merely from the words “but from the words with the proscribed effects intended in the mind of the children”.

Senior Superintendent Steve Li, from Hong Kong’s national security police unit, holds the children’s books that police said were seditious [File: Daniel Suen/AFP]

“They will be told that in fact, they are the sheep, and the wolves who are trying to harm them are the PRC (People’s Republic of China) Government and the Hong Kong Government,” wrote Kwok, who is on a panel of national security judges selected by the city’s leader.

The five will be sentenced on Saturday. The sedition law carries a sentence of up to two years in prison.

In a statement in response to the verdict, Amnesty International’s China campaigner Gwen Lee described the conviction as an “absurd example of the disintegration of human rights in the city.

“Writing books for children is not a crime, and attempting to educate children about recent events in Hong Kong’s history does not constitute an attempt to incite rebellion.”

Before the imposition of the security law, Hong Kong enjoyed considerable freedom of expression and was home to a vibrant media and publishing industry.

But the sweeping crackdown in the wake of the 2019 protests has forced many outlets to close, including the hugely popular tabloid Apple Daily, while books have been removed from libraries, and school curriculums were rewritten to include lessons on the security law for children as young as six.

Many pro-democracy activists and politicians are either in jail, awaiting trial or have fled overseas, and dozens of civil society groups, including multiple trade unions, have closed down.

Only people deemed “patriots” are allowed to hold office in Hong Kong.

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Parents of critically injured Mirror dancer arrive in Hong Kong – South China Morning Post

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Asian stocks follow Wall Street ahead of likely US rate hike

BEIJING (AP) — Asian stock markets followed Wall Street lower Wednesday as traders prepared for a possible sharp interest rate hike from the Federal Reserve to cool inflation.

Shanghai, Hong Kong and South Korea declined. Tokyo advanced. Oil prices were little changed, staying below $100 per barrel.

Wall Street tumbled Tuesday after Walmart warned inflation that has spiked to a four-decade high of 9.1% is hurting American consumer spending.

The Fed on Wednesday is expected to announce a rate hike of up to three-quarters of a percentage point, triple its usual margin. That would match a similar increase last month, the U.S. central bank’s biggest in 28 years.

Investors worry aggressive action against inflation by the Fed and central banks in Europe and Asia might derail global economic growth.

“The main risk at this stage is in fact an inflation ‘overkill’ with monetary tightening too abrupt, unnecessarily pushing up the unemployment rate,” said Thomas Costerg of Pictet Wealth Management in a report. Thomas said most economic indicators and lower commodity prices already point to slower inflation ahead.

The Shanghai Composite Index lost 0.1% to 3,273.32 while Tokyo’s Nikkei 225 advanced 0.1% to 27,692.89. The Hang Seng in Hong Kong sank 1.5% to 20,598.58.

The Kospi in Seoul retreated 0.6% to 2,398.48 and Sydney’s S&P-ASX 200 shed 0.1% to 6,798.20.

New Zealand advanced while Southeast Asian markets declined.

On Wall Street, the benchmark S&P 500 index fell 1.2% to 3,921.05. The Dow Jones Industrial Average dropped 0.7% to 31,761.54. The Nasdaq composite closed 1.9% lower at 11,562.57.

Walmart slumped 7.6% after the retail giant cut its profit outlook for the second quarter and the full year late Tuesday. It said rising prices for food and gasoline are forcing shoppers to cut back on more profitable discretionary items, particularly clothing.

The retailer’s profit warning in the middle of the quarter is rare and raised worries about how the highest inflation in 40 years is affecting the entire retail sector.

Other major chains also fell. Target dropped 3.6%, Macy’s slid 7.2% and Kohl’s fell 9.1%.

Tech stocks retreated. Microsoft fell 2.7%, Amazon slid 5.2% and Facebook owner Meta Platforms dropped 4.5%.

General Motors fell 3.4% after its second-quarter profit fell 40% from a year ago. U.S. sales fell 15% after shortages of processor chips and other components left the company unable to deliver 95,000 vehicles during the quarter.

In energy markets, benchmark U.S. crude rose 30 cents to $95.28 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.72 on Tuesday to $94.98. Brent crude, the price basis for international oils, added 5 cents to $99.51 per barrel in London.

The dollar rose to 136.97 yen from Tuesday’s 136.00 yen. The euro gained to $1.0145 from $1.0120.

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Asian shares track Wall Street’s inflation-fueled retreat

TOKYO (AP) — Shares dropped sharply in Asia on Thursday after a broad retreat on Wall Street triggered by dismal results from major retailer Target that renewed worries over the impact of high inflation.

Hong Kong’s Hang Seng led the declines, dropping 3.1%, while Tokyo’s Nikkei 225 index was 2.7% lower.

The Dow Jones Industrial Average sank more than 1,100 points, or 3.6%, and the S&P 500 had its biggest drop in nearly two years Wednesday, shedding 4%. That was its steepest decline since June 2020. The tech-heavy Nasdaq fell 4.7%.

The benchmark index is now down more than 18% from the record high it reached at the beginning of the year. That’s shy of the 20% decline that’s considered a bear market.

The Federal Reserve is trying to temper the impact from the highest inflation in four decades by raising interest rates. Many other central banks are on a similar track. But the Bank of Japan has stuck to its low interest rate policy and the gap between those benchmark rates of the world’s largest and third-largest economies has pushed the dollar’s value up against the Japanese yen.

Japan recorded a trade deficit in April as imports ballooned 28% as energy prices soared amid the war in Ukraine and the yen weakened against the dollar.

Japan’s exports grew to 8.076 trillion yen ($63 billion) last month, up 12.5% from the previous year, according to Ministry of Finance data released Thursday. Imports totaled 8.915 trillion yen ($70 billion) in April, up from 6.953 trillion yen in April 2021, and the highest since comparable numbers began to be taken in 1979.

The Nikkei 225 in Tokyo lost 2.7% to 26,196.50 and the Hang Seng in Hong Kong dropped 3.1% to 20,007.39. In South Korea, the Kospi shed 1.7% to 2,582.35, while Australia’s S&P/ASX 200 gave up 1.6% to 7,069.90.

The Shanghai Composite index fell 1.1% to 3.052.34.

On Wednesday, the S&P 500 fell 165.17 points to 3,923.68, while the Dow slid 1,164.52 points to 31,490.07. The Nasdaq slid 566.37 points to 11,418.15.

Smaller company stocks also fell sharply. The Russell 2000 fell 65.45 points, or 3.6%, to 1,774.85.

Target lost a quarter of its value after reporting earnings that fell far short of analysts’ forecasts. Inflation, especially for shipping costs, dragged its operating margin for the first quarter to 5.3%. It had been expecting 8% or higher.

Target warned that its costs for freight this year would be $1 billion higher than it estimated just three months ago. And Target and Walmart each provided anecdotal evidence that inflation is weighing on consumers, saying they held back on purchasing big-ticket items and changed from national brands to less expensive store brands.

The report comes a day after Walmart said its profit took a hit from higher costs. The nation’s largest retailer fell 6.8%, adding to its losses from Tuesday.

The weak reports stoked concerns that persistently rising inflation is putting a tighter squeeze on a wide range of businesses and could cut deeper into their profits.

Other big retailers also racked up hefty losses. Dollar Tree fell 14.4% and Dollar General slid 11.1%. Best Buy fell 10.5% and Amazon fell 7.2%.

Technology stocks, which led the market rally a day earlier, were the biggest drag on the S&P 500. Apple lost 5.6%, its biggest decline since September 2020.

Bond yields fell as investors shifted money into lower-risk investments. The yield on the 10-year Treasury fell to 2.88% from 2.97% late Tuesday.

The disappointing report from Target comes a day after the market cheered an encouraging report from the Commerce Department that showed retail sales rose in April, driven by higher sales of cars, electronics, and more spending at restaurants.

Investors worry the Fed could trigger a recession if it raises interest rates too high or too quickly. Worries persist about global growth as Russia’s invasion of Ukraine puts even more pressure on prices for oil and food while lockdowns in China to stem COVID-19 cases worsens supply chain problems.

Such factors led the United Nations to cut its forecast for global economic growth this year from 4% to 3.1%.

In other trading, benchmark U.S. crude oil rose 41 cents to $110.00 per barrel in electronic trading on the New York Mercantile Exchange. It dropped $2.81 to $109.59 on Wednesday.

Brent crude, the basis for pricing for international trading, climbed 92 cents to $110.03 per barrel.

The dollar rose to 128.46 Japanese yen from 128.20 yen late Wednesday. The euro strengthened to $1.0487 from $1.0464.

___

AP Business writers Damian J. Troise and Alex Veiga contributed.

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Hong Kong actor Kenneth Tsang dies in quarantine hotel

HONG KONG (AP) — Veteran Hong Kong actor Kenneth Tsang has died while in a COVID-19 quarantine hotel in the southern Chinese city, local media reported.

Tsang was best known internationally for his action roles in the 2002 James Bond film “Die Another Day,” John Woo’s “The Killer” in 1989, “Rush Hour 2” in 2001 starring Jackie Chan and Chris Tucker, and 1998′s “The Replacement Killers” alongside Chow Yun-Fat and Mira Sorvino.

Tsang had been undergoing seven days of quarantine after returning from Singapore on Monday and was found collapsed on the floor of his hotel room by staff on Wednesday, according to the South China Morning Post and other media.

The South China Morning Post said Tsang was 87 but other sources gave his age as 86.

No cause of death was given and the paper said he had tested negative for the virus and had no underlying medical conditions.

In all, Tsang had some 237 acting credits, mainly in Hong Kong film and television productions, and especially in detective and martial arts movies, according to his IMDb page.

Born in Shanghai, Tsang began acting after obtaining an architecture degree at the University of California, Berkeley, making his debut in 1955. In 1969 alone, he was credited in more than 20 movies and continued working up to the time of his death.

Tsang was married three times and had a son with his first wife, Lan Di, and a daughter with his second wife, Barbara Tang.

Hong Kong is dealing with a renewed outbreak in cases of the highly transmissible omicron variant and requires all inbound travelers to undergo quarantine for up to 14 days.

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