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Hong Kong stocks return shortly after turbulent week – latest Asian market



Although the index closed higher Friday, it slid nearly 4.8% last week. This was the biggest weekly decline of Yang Seng since August. The city has been rocked by violent protests that have escalated in recent days.

The local economy is also affected. The Hong Kong government warned on Friday that mass protests could cause the economy to shrink by 1.3% this year, marking the first annual recession of 2009.
Tencent (HEADS) advanced 2.1%. Bloomberg announced on Friday that Chinese social media and gaming giant was reportedly in talks with investors over a minority stake in Universal Music Group. Tencent did not immediately respond to a request for comment from CNN Business on Monday.
China Shanghai Composite Index (SHCOMP) also built on previous gains and lasted 0.6%. The National Bank of China cut its key interbank lending rate on Monday, two weeks after the central bank cut another important rate.

It is another sign that the central bank is "starting to take a more proactive approach" to boost borrowing costs to accelerate economic growth, said Yianulian Evans-Pritchard, a senior Chinese equity economist.

The move Monday could encourage banks to lower the loan rate on Wednesday as bank financing costs are lower, he wrote in a research note. LPR is the interest rate that banks charge corporate clients for new loans. It is a new benchmark for borrowing that China introduced in August and hopes to gradually replace the existing benchmark lending rate.
Elsewhere in the region, markets were relatively excluded. Japan Nicaean 225 (N225) received 0.3%. South Korea Index of Cospi (COPY)still slipped 0.3%
Investors may be looking for more trade news. Wall Street's main indices all closed in the green on Friday partly due to trade optimism between the US and China. Over the weekend, the Chinese Ministry of Commerce said Chinese and US negotiators had been "constructively discussing" the phase one deal.
SoftBank (SFTBF) announced on Monday the plan to merge its Z Holdings unit, formerly Yahoo Japan, with the messaging operator Line Corp in 2020.
Z Holdings (YAHOY) and Corp Line (LN) 1.2% and 2.2% each went to Tokyo.
US futures, meanwhile, fell slightly during Asian trading on Monday. Futures for Dow (INDU), S&P 500 (SPX) and Nasdaq (KOMP) they were all down.

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