Nomura cuts recommendation on HK stocks as protests, trade war escalate

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Nomura cuts recommendation on HK stocks as protests, trade war escalate
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Japanese brokerage Nomura downgraded its recommendation on Hong Kong st...

FILE PHOTO: A man walks past a signboard of Nomura Securities outside its branch in Tokyo, Japan, February 2, 2016. REUTERS/Yuya Shino/File Photo

Anti-government demonstrations in the city escalated over the weekend with protesters hurling Molotov cocktails at security forces who responded with water cannon and tear gas, as protests entered their third month. Nomura has cut its rating on MSCI’s basket of Hong Kong companies .dMIHK00000PUS to “underweight” from “overweight”.The protracted U.S.-China tariff war is also piling pressure on the trade-reliant territory, with yuandepreciation hurting the valuation of Chinese companies listed in the financial center, said Nomura.

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