South Korean investors are pouring millions of dollars into Hong Kong’s stock market at levels not seen in three years, even as Asian markets count losses caused by the US’s head-strong policies against China. Traders are looking for straws to clutch while concerns over a potential US recession and tariff disputes mount on global equities.
Per data compiled by Bloomberg, South Korean investors purchased a net total of $189 million in Hong Kong equities last month. The buying spree has continued into March, setting up for the largest two-month net purchase of Hong Kong stocks since early 2021.
The interest in Hong Kong equities spells a turnaround in sentiment after South Korean investors were presumably net sellers for the 2024 fiscal year. As reported by Cryptopolitan, the city’s benchmark Hang Seng Index has surged 18% this year, buoyed by strong demand from Chinese investors, who set a record for Hong Kong stock purchases on Monday.
In the western part of the world, US stock market investors saw more than $1.1 trillion wiped away in the 24 hours leading up to yesterday’s close. Much of the blame for losses is being directed toward the Trump administration’s policies.
Asian markets take a slide on US economic scares
The sell-off in US markets has spilled into Asia, with stock indexes across the region sinking even more deeper in the early trading hours of Tuesday.
“Asian markets follow Wall Street’s weak lead with a broad-based decline across the region,” said Kyle Rodda, a senior economist at Capital.com in Melbourne. “Event risk is relatively limited today, with price action likely to reflect the recessionary risks building in the United States.”
The MSCI Asia Pacific Index fell as much as 2.1%, hitting a five-week low before reducing its losses to 1.5%. Japan’s Nikkei 225 dropped nearly 3% in early trading before trimming some of its losses, and is now down 0.6%.
South Korea’s KOSPI slid as much as 2%, while Taiwan’s TAIEX fell nearly 3% at one point. Australia’s S&P/ASX 200 dropped as much as 1.3%, while Hong Kong’s Hang Seng Index was down less than 1%.
Across the continent, technology stocks led the declines. Japan’s Sony and Hitachi both fell more than 4.5% in early trading, while SoftBank tumbled 4.4%. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, and Apple supplier Foxconn both declined by more than 3%. In South Korea, Samsung Electronics saw its stock drop more than 2%.
US stocks plunge, erasing post-Trump election gains
Of the biggest losers in the bunch is Wall Street, who arguably have more reasons to be angry at Trump than global markets. Tuesday’s pre-market trading data shows the Nasdaq Composite suffered its worst single-day decline since September 2022.
“Why did you vote for Trump?”
“Because he’s better for the economy!”
“But…Trump crashed the economy and Biden stepped in and doubled it in four years”
“Hahaha fake news! Watch what Trump does to make things better!”
The economy in Trump’s first month:
😑#stockmarketcrash pic.twitter.com/tnxl6XVP74
— Skunk Factory (@skankyskunk47) March 10, 2025
The S&P 500 and Dow Jones Industrial Average are also seeing red flashes, both recording over 2.5% losses today.
On Monday, the Dow tumbled 890 points, a 2.08% drop, while the S&P 500 plummeted 2.7%. The Nasdaq, heavily weighted toward technology stocks, plunged 4%, dragged down by Tesla, whose stock has shockingly shed over 15% in the last day.
The latest downturn has erased all gains made by the three major US stock indexes since Donald Trump won the presidential election in November last year. Market sentiment has been rattled by the US’s trade standoff with other countries, exacerbated by Trump’s tariff policies and growing fears of an incoming recession.
According to CNN, Delta Air Lines revised its earnings forecast downward on Monday, because of “a decline in consumer and corporate confidence.” The airline said America has a weakening market optimism. Businesses could be waiting to see what the outcome of Trump’s “transitional period” will breed.
