The Hong Kong protests, which we covered over the weekend, and which took a dramatic turn for the worse overnight when thousands of students camped out and demand universal suffrage on the city streets and were in turn tear-gassed and arresteden masse by the local riot police demanding students disperse or else, and where the leader of the student protest, Joshua Wong – who had been previously arrested and was released on Sunday night – has openly called for the resignation of Hong Kong Chief Executive Leung Chun-ying in an interview with Hong Kong Cable TV, have done the unthinkable: they have impacted financial markets and the “wealth effect” transmission mechanism of the local billionaires.
Here as a summary of the latest market activity via Bloomberg:
Hang Seng Index declines 2.25% after falling as much as 2.5%, most since Feb. 4; erases YTD gains MSCI Hong Kong Index drops as much as 3.2%, most since Nov. 2011 HSI Volatility Index surges as much as 27%, most since Aug. 2011 HKD weakens as much as 0.09% against USD to HK$7.7648, most since Dec. 2011 Hong Kong 1-yr rate swap rises 3 bps, most since June 2013 Chinese Yuan falls 0.24%, most since March 20, to 6.1415 per dollar. Yuan 12-mo. forwards drop 0.25% to 6.2596 per dollar after falling by as much as 0.34%, most since March 12 Fitch says events in past 24 hrs won’t significantly affect ratings; says unlikely that protests will be on wide enough scale and last long enough to have material effect on H. K.’s economy and financial stability: Fitch’s Colquhoun
This post was published at Zero Hedge on 09/29/2014.