On Monday, share prices for listed casino businesses across Asia, including those related to Macau, experienced significant declines. This downturn was part of a broader sell-off in the region, with Hong Kong leading the losses. The market's reaction was fueled by escalating fears of a global trade war, triggered by recent tariff announcements from the United States.
Impact of U.S. Tariffs on Asian Markets
The previous week, U.S. President Donald Trump had announced a new 34-percent tariff on all Chinese goods imported into the United States. This was part of a broader strategy to establish a 10-percent baseline tariff on imports from nearly every country, though many nations, including China, faced higher rates. In response, China declared on Friday, a day when the Hong Kong stock exchange was closed for a public holiday, that it would impose matching 34-percent tariffs on all U.S. imports. The repercussions of these announcements were felt strongly on Monday as markets reopened.
Casino Stocks Plummet Across Asia
Returning from a long weekend, the Hang Seng Index in Hong Kong fell by 13.2 percent, while mainland China's CSI 300, which includes the 300 largest market capitalization stocks, dropped nearly 7.1 percent. All six of Macau's casino companies saw their stock values decrease by more than 10 percent. SJM Holdings Ltd was hit hardest, with an 18.0-percent decline.
Other notable declines included Melco International Development Ltd, the parent company of Melco Resorts & Entertainment Ltd, which fell 16.1 percent; Sands China Ltd, down 14.3 percent; and Wynn Macau Ltd, which saw a 13.0 percent drop. Galaxy Entertainment Group Ltd and MGM China Holdings Ltd also experienced significant losses, falling 12.4 percent and 11.9 percent respectively by the end of trading. NagaCorp Ltd, the operator of Cambodia's largest casino, NagaWorld in Phnom Penh, ended the day 19.9 percent lower in Hong Kong trading.
The downturn was not limited to Hong Kong; other major Asian markets also saw declines, affecting various listed casino firms. In the Philippines, Bloomberry Resorts Corp, which operates Solaire Resort & Casino in Manila and Solaire North in Quezon City, saw its shares drop by 8.7 percent. In Singapore, Genting Singapore Ltd, which runs Resorts World Sentosa, closed down 7.5 percent, while its sister company, Genting Malaysia Bhd, listed on Bursa Malaysia, recorded a 7.4-percent decline.
South Korean casino operators were somewhat less affected, with declines ranging from 1.3 percent to 3.9 percent. Equity research provider Morningstar noted in a recent report that 'geopolitical and U.S. policy actions' were increasing the 'risk premium' for the stock prices of American casino operators with exposure to Macau's gaming market.
Source: Hong Kong casino-related stocks lead sell-off in Asian markets on Monday, GGRAsia, April 7, 2025.
Posted by Wizard
Apr 08 2025
Apr 08 2025
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