Asian casino stocks tumble amid rising U.S. trade tensions
Casino operators across Asia unfortunately took a big hit this week as escalating trade tensions between the U.S. and China have rattled investors and sent share prices tumbling.
The latest round of tit-for-tat tariffs has definitely shook up geopolitical uncertainty, particularly in tourism-dependent hubs like Macau and Singapore.
Leading the losses was Hong Kong-listed Galaxy Entertainment Group, which shed over 12% in a single trading session, closing at HK$26.40 (US$3.37) on April 7, down from HK$30.15 earlier in the week.
This drop marked one of the most significant daily slumps among casino stocks.
The broader market wasn’t spared either with Melco Resorts & Entertainment seeing its stock fall by 9.8% to US$4.80, while Las Vegas Sands, which owns Sands China, slid 8.4% to US$33.37.
Wynn Resorts, operator of Wynn Macau, dipped 3.8% to US$70.09, and MGM Resorts International, closely tied to MGM China, fell 3.7% to US$26.86.
The slump wasn’t confined to Macau with Resorts World Sentosa, shares shrinking 7.5% to S$0.6750. Its Malaysian counterpart, Genting Malaysia Bhd, dropped 7.4%.
The selloff came after President Donald Trump announced a 34% tariff on all Chinese imports, bringing immediate retaliation from Beijing.
The impact was compounded by market closures in Hong Kong on Friday, causing a backlog of investor reaction to hit on Monday, when the Hang Seng Index fell 13.2% and mainland China’s CSI 300 dropped 7.1%.
Macau’s “Big Six” operators were all caught in the storm with SJM Holdings being the hardest hit, falling 18%.
Parent company Melco International Development dropped 16.1%, Sands China lost 14.3%, Wynn Macau fell 13%, and MGM China was down nearly 12%.
Even NagaCorp, which operates Cambodia’s NagaWorld, wasn’t immune, closing down 19.9% in Hong Kong.
Meanwhile, the Philippines’ Bloomberry Resorts Corp, which owns Solaire Resort & Casino, declined 8.7%, while South Korea’s casino firms experienced more moderate losses of between 1.3% and 3.9%.
According to a note from equity analysts at Morningstar, the volatility reflects an increased “risk premium” on gaming stocks, particularly those with strong U.S. ties and exposure to the Macau market.
The timing couldn’t be worse for casinos already navigating slower tourism recovery and regulatory scrutiny.
With tensions showing no signs of easing, operators and investors alike are bracing for what could be a volatile period in Asia’s gaming sector.
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