Hang Seng detonates: Alibaba, Baidu in freefall — Global markets enter panic spiral
Hang Seng is getting torched in real time. This isn’t a drawdown — it’s a detonation. The index is collapsing 9.1% as I write this, with Alibaba and Baidu both plunging over 12%. The Hang Seng Tech Index is now down 23% from its March peak — forget correction, we’re staring down a tech-led margin call massacre. This is your Trade War 2.0 wake-up call, and the market just hit the panic button.
Meanwhile, Japan’s financials just faceplanted — the TOPIX Banks Index is down over 12%, forcing circuit breakers to slam shut on TOPIX futures. Traders are already leaning hard on BoJ bailout watch, with Ishiba floating a “broad deal” with the U.S. That’s not diplomacy — that’s survival mode.
On the rates tape, it’s just as brutal. When the Fed dropped 50bps back in September, the 5Y5Y sat at 2.39%. Today, it's 2.29%,. Hence rates traders have five full cuts already priced in. Mr. Market is screaming for policy rescue, but Powell’s still in ghost mode.
Let’s not kid ourselves — this isn’t just another risk-off session. This is a systemic re-rating of the global growth story. Tariffs. Recession. Tech carnage. FX dislocation. Credit cracking. Commodities puking. The entire complex is flashing red. If you’re long risk without hedges, you’re a spectator to your own portfolio funeral.
And yes, charts are going full horror show. Terminals lit up like Christmas — but all red. The S&P’s $5.4 trillion drawdown in 48 hours now looks like Act One. The bears are driving and there's no brakes on this thing unless the White House blinks or the Fed folds.
Author
Stephen Innes
SPI Asset Management
With more than 25 years of experience, Stephen has a deep-seated knowledge of G10 and Asian currency markets as well as precious metal and oil markets.
