Hong Kong Stocks Decline Most in 7 Weeks on China Data
Hong Kong stocks fell, with the benchmark index headed for its biggest drop in almost seven weeks, as a preliminary survey showed China’s manufacturing unexpectedly contracting. Concern that the Federal Reserve will scale back stimulus also dragged shares lower.
The Hang Seng Index slid 1.8 percent to 22,830.32 as of 10:25 a.m. in Hong Kong, headed for its steepest drop since April 5. All but two companies fell on the 50-member gauge, with trading volume 25 percent higher than the 30-day intraday average. The Hang Seng China Enterprises Index (HSCEI) of mainland companies lost 2.1 percent to 10,817, erasing the month’s gain.
Futures on the Hang Seng Index declined 2 percent to 22,774. The HSI Volatility Index rose 2 percent to 16.64, indicating traders expect a swing of 4.8 percent for the equity benchmark in the next 30 days.
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