Hong Kong stocks leads loss in the Asian Markets

The Hong Kong stocks led the losses in the region of the Asian markets this Tuesday after the agency of ratings Moody’s had cut their ratings of the city to Aa3 from the level of Aa2 this Monday.

The stock index of the city had fallen by 2.67% in the final hour in the trading as the shares plunged for the insurer AIA to a level beyond 3%.

Tencent which is a tech giant from China had also dropped a by 2.88% post the reports of Pony Ma, their chairman had sold $2 billion in the currency of Hong Kong dollars in shares.

These moves had come after the downgrade in ratings from Moody’s this Monday where this agency had changed their outlook for the city to being stable from a negative. Hong Kong has been suffering due to many months of the protests which have been degenerating periodically in violence with there being no resolution seemingly in sight.

The downgrade is reflecting principally the view of Moody’s that the institutions of Hong Kong and the strength of governance is lower than what had been estimated previously as per the statement of the agency.

An economist had still said that the downgrade is not very significant as he said that the number of things which will be impacting real activity isn’t too much

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The stocks of mainland China had also seen a decline on this day. The stock markets had all been down. Similarly, in Japan where the stock markets were lower too and in South Korea as well.

Bank of Japan had also kept their rate of short-term policy unchanged at a level of -0.1%.

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