US stocks fall amid Hong Kong unrest

The pro-democracy protests in Hong Kong have sparked fears and uncertainty among investors in Wall Street, pulling down US stocks on Monday. 

The Dow Jones Industrial Average dropped nearly 42 points, ending 0.3 percent lower, nearing lows in May. The Standard Poor’s 500 index also dropped 0.3 percent and the Nasdaq composite fell 0.1 percent.

Markets were unnerved by massive street protests in Hong Kong that sent equities in the Asian financial hub about two percent lower.

Apple and Ford stocks also brought US markets down. The tech giant dropped following reports of illegal tax deals in Ireland. Ford Motor Company slumped 7.5 percent as the company’s projected 2014 profits dropped by 2 billion dollars.

Market strategists say Wall Street is concerned that the civil protests in Hong Kong may spread to mainland China, an “Asian version of the Arab Spring,” which would likely cause turbulence in Beijing.

The unrest was triggered after China refused to allow open nominations for the city’s next chief executive in 2017, forcing the voters to choose from a list of two or three candidates selected by a nominating committee.

Activists insisted that the region’s citizens must be able to elect the chief executive. They believe the decision raises fears that candidates will be screened for loyalty to Beijing.

Hong Kong is a key player in global markets, known for trade, real estate and banking. The financial hub has enjoyed substantial political autonomy since 1997, when its leadership returned to China after about a century of British colonial rule.

AHT/AGB