Hong Kong Stocks Decline Most in a Week on Fed Concerns
Hong Kong stocks fell, with the benchmark index headed for its biggest drop in a week, on expectations the Federal Reserve will scale back stimulus as soon as September.
Man Wah Holdings Ltd. (1999), a sofa maker that gets half its sales from the U.S., dropped 1.3 percent. Lenovo Group Ltd. (992), the world’s second-largest maker of personal computers, slumped 1.7 percent after gaining yesterday on an announcement it’s negotiating for a partnership. Developers slid after home sales in the city fell, with the Hang Seng property gauge heading for its longest losing streak since February. GCL-Poly Energy Holdings Ltd. (3800), the world’s No. 1 maker of polysilicon used in solar panels, increased 4.4 percent after the European Union imposed smaller-than-expected tariffs on panels from China.
The Hang Seng Index (HSI) fell 0.7 percent to 22,125.43 as of 10:23 a.m. in Hong Kong, with all but seven stocks declining on 50-member gauge. Trading volume was 38 percent less than the 30-day intraday average. The Hang Seng China Enterprises Index (HSCEI) of mainland companies retreated 0.7 percent to 10,465.43 even after a private report showed China’s services industry expanded last month.
Futures on the Hang Seng Index declined 0.3 percent to 21,920. The HSI Volatility Index climbed 0.8 percent to 16.87, indicating traders expect a swing of 4.8 percent for the equity benchmark in the next 30 days.
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