Hong Kong stocks wildest since 2016

The Hang Seng Index retreated 1% on Wednesday as the departure of Gary Cohn from the Trump administration sent US stock futures slumping. Hong Kong’s market has already been buffeted by concerns over a possible trade war, with the gauge rebounding 2.1% yesterday after sinking 2.3% on Monday.

The last time the measure had back-to-back moves of more than 2% was in January 2016.

The risk of a global trade conflict breaking out has coincided with the annual National People’s Congress - a carefully stage-managed gathering where this year lawmakers will repeal presidential term limits preventing Xi Jinping from indefinite rule.

Moves in mainland Chinese markets are typically muted during the meetings as policy makers seek to avoid volatility marring the event. This week has shown how Hong Kong’s markets - despite being dominated by Chinese companies - continue to be subject to global shifts in sentiment.

Energy stocks and insurers led losses in Hong Kong. A gauge of 50-day volatility on the Hang Seng Index climbed to its highest level since April 2016.