So yeah, one of things we’ve pointed out over the past 24 hours is that you really want to watch the Hang Seng and also H-shares amid the unfolding global equity rout because they were the world-beaters in January:
As you can see, South Korean small-caps were standout performers as well and they were down 4% on Monday and are down markedly again on Tuesday.
But let’s zoom in on the Hang Seng. On Monday, it had a horrific gap lower at the open but managed to retrace a good portion of the losses as the day wore on. It will need that kind of bounce again, because Hong Kong shares are down nearly 4% early and H-shares are sharply lower as well. If you pan out a bit, you can see that February has not been nearly as kind to Hong Kong shares as January was:
That is not pretty and if you’re keeping score at home, the Hang Seng is down 1,200 points so far today:
So, hey! Don’t feel too bad U.S. investors, your benchmark isn’t the only one down more than 1,000 points.