Most Hong Kong Stocks Decline on Property; Cnooc Surges

Most Hong Kong stocks dropped as property and financial stocks led the decline. Cnooc Ltd. (883) surged after beating earnings expectations.

The Hang Seng Index (HSI) fell 0.2 percent to 21,926.06 as of 9:32 a.m. in Hong Kong, with three shares falling for each that rose on the 50-member gauge. The equity benchmark dropped the most in seven weeks yesterday as outflows from emerging markets accelerated amid concern the Federal Reserve will start reducing stimulus next month.

The Hang Seng Index retreated 3 percent this year through yesterday, the worst performer among developed markets tracked by Bloomberg. The gauge traded at 10.5 times estimated earnings yesterday, compared with 15 for the Standard & Poor’s 500 Index.

Emerging-market stocks tumbled to a six-week low yesterday as investors withdrew $8.4 billion from developing-nation exchange-traded funds this year with weakening economies from India to Indonesia fueling pessimism.

The Hang Seng China Enterprises Index, also known as the H-share index, lost 0.1 percent to 9,898.13 today. The gauge fell 19 percent from a Feb. 1 high through yesterday. The index traded at 1.2 times book value, compared with a five-year average of 1.8.

Materials and energy companies led declines this year on the Hang Seng Composite Index amid concern weaker expansion in China will sap demand. Information-technology and utility shares were the biggest gainers.

U.S. Shares

Futures on the S&P 500 fell 0.1 percent today. The gauge rose 0.4 percent yesterday, snapping a four-day losing streak, as retailers’ results surpassed estimates and investors awaited signals on stimulus measures from the Federal Reserve.

The Federal Open Market Committee will release minutes of its July 30-31 meeting today, with investors seeking clues on when the central bank will pare $85 billion in monthly asset purchases. Officials will begin to curtail bond buying at their Sept. 17-18 meeting, according to 65 percent of economists surveyed by Bloomberg from Aug. 9-13. Global central bankers meet in Jackson Hole, Wyoming, on Aug. 22-24 to discuss the world economy and monetary policy.

To contact the reporter on this story: Jonathan Burgos in Singapore at

To contact the editor responsible for this story: Sarah McDonald at

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