Hong Kong Stocks Slide as Tencent Leads Declines

Hong Kong stocks fell as Tencent Holdings Ltd. led the city’s benchmark index lower for a second day amid a global selloff in technology shares.

The Hang Seng Index (HSI) slid 0.3 percent to 22,435.88 as of 9:30 a.m. in Hong Kong. Tencent sank 4.2 percent, poised for the lowest close in more than two months. The Hang Seng China Enterprises Index, also known as the H-share index, added 0.6 percent to 10,168.59. Mainland markets are closed for a holiday.

The Hang Seng Index was the second-worst performer among developed markets this year through April 4, even after the measure rose the past two weeks as U.S. data pointed to a recovery from severe winter weather and China outlined stimulus plans. The gauge traded at 10.3 times estimated earnings last week, compared with 15.9 times for the Standard & Poor’s 500 Index.

Futures on the S&P 500 lost 0.1 percent today. The U.S. equities benchmark index declined 1.3 percent on April 4, with the Nasdaq Composite Index sliding the most in two months, after the largest technology stocks from Google Inc. to Yahoo Inc. plunged as investors sold the bull market’s biggest winners.

Payrolls in the U.S. rose 192,000 last month after a 197,000 gain in February that was larger than first estimated, the Labor Department reported April 4 in Washington. The median forecast in a Bloomberg survey of economists projected a 200,000 gain. Private employment, which excludes government jobs, surpassed the pre-recession peak for the first time.

Pacific Investment Management Co.’s Bill Gross said the pace of employment growth in the U.S. means the Fed will continue to wind down bond purchases and then consider raising interest rates.

To contact the reporter on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net

To contact the editors responsible for this story: Sarah McDonald at smcdonald23@bloomberg.net

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