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Hong Kong: Shares follow Asia lower on worries over US rates, Brexit

Wednesday, October 12, 2016 - 16:31

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[SHANGHAI] Hong Kong stocks fell on Wednesday as global markets enter a period of rising uncertainty, with investors bracing for the US presidential election, a possible US rate hike and bruising negotiations on Britain's exit from the European Union.

The Hang Seng index fell 0.6 per cent to 23,407.05 points, while the China Enterprises Index lost 1.3 per cent to 9,673.20.

Hong Kong stocks followed Asian markets lower after US stocks dropped over 1 per cent overnight, with the dollar and Treasury yields rising on growing expectations of a US rate hike in December.

The recent slump in the British pound, triggered by fears of a costly and possibly chaotic "hard Brexit", also curbed risk appetite.

Market voices on:

Some investors also attributed the market weakness to renewed fears of yuan depreciation, which would reduce the appeal of Hong Kong-listed mainland companies, whose assets are denominated in the Chinese currency.

All main sectors fell, with raw material shares leading the decline.


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