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Hong Kong is set to close its $4.9 trillion stock market for the entire day on Friday as the city extends its storm warning for Super Typhoon Yagi, which passed near the region overnight on its way to southern China.
Trading for the morning session has already been halted, and the city's weather bureau has announced that Typhoon Signal 8 will likely remain in effect until at least 12:40 p.m. Under current stock exchange regulations, if the alert is not downgraded by noon, afternoon trading will also be canceled.
This may be the final instance of a typhoon causing a market closure, as Hong Kong plans to end its long-standing practice of suspending trading during typhoons starting September 23. The last trading halt occurred in September of last year due to the heaviest rainstorm on record since 1884.
The trading suspension comes amid efforts to boost market liquidity and appeal, including stamp-duty cuts on stock transactions last year. The Hang Seng Index has fallen over 5% in the past year, underperforming many global indices.
Signal 8, the third-highest typhoon alert, was issued Thursday evening, indicating gale or storm-force winds. MTR Corp. reported limited rail services, and schools have been closed for the day. Hong Kong International Airport, a major global hub, is operating with around 200 flight cancellations, affecting about 20% of daily traffic.
Currently, Super Typhoon Yagi is about 400 kilometers south-southwest of Hong Kong, heading toward Hainan Island with maximum sustained winds of 130 knots (241 kilometers per hour), comparable to a Category 4 hurricane. At Haikou on Hainan, all flights have been canceled, and most services at Sanya airport have been suspended.
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