Casino-related stocks across Asia dropped on Monday, with Hong Kong-listed firms leading the decline, as investors reacted to rising concerns over a trade war between the United States and China. It follows after on Monday Morningstar noted in a report that rising geopolitical tensions and U.S. policy actions have also added risk to U.S. casino companies with exposure to the Macau gaming market.
Last week, U.S. President Donald Trump announced a new 34-percent tariff on Chinese imports, part of a broader 10-percent baseline tariff policy affecting nearly all countries. China responded with matching 34-percent tariffs on U.S. goods, escalating the trade conflict.
Asian markets reopened Monday after a public holiday and experienced quite a shakeup as well as other financial markets such as crypto. Hong Kong’s Hang Seng Index falling more than 13 percent. Mainland China’s CSI 300 Index dropped by 7 percent.
Macau casino operators were hit hard. SJM Holdings Ltd lost 18 percent. Melco International Development Ltd, parent company of Melco Resorts & Entertainment, dropped 16 percent. Sands China Ltd fell 14.5 percent, and Wynn Macau Ltd closed 13 percent lower.
Galaxy Entertainment Group Ltd fell 12.5 percent, while MGM China Holdings Ltd lost 12 percent. Cambodia-based NagaCorp Ltd, which runs NagaWorld in Phnom Penh, saw its stock fall 20 percent in Hong Kong trading.
The selloff extended across the region. Bloomberry Resorts Corp in the Philippines, operator of Solaire Resort & Casino, declined 9 percent. In Singapore, Genting Singapore Ltd, which runs Resorts World Sentosa, dropped 7.5 percent. Genting Malaysia Bhd, listed in Kuala Lumpur, ended down 7.5 percent as well.
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