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Hong Kong: Stocks snap 4-day winning streak on outflow worries

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[HONG KONG] Hong Kong stocks ended slightly lower on Wednesday, snapping a four-session winning streak, as a stronger US dollar added to worries about capital outflows from emerging markets.

The Hang Seng index closed down 0.1 per cent at 22,134.47 points, while the Hong Kong China Enterprises Index slipped 0.2 per cent to 9,440.99.

The dollar index, a measure of the greenback's value against six major currencies, climbed to a 14-year intraday high overnight, leaving emerging markets vulnerable to a rotation of capital back the United States as investors look for better yields.

But investor anxiety was expected to ease, with the HIS Volatility Index, a gauge of market stress, falling nearly 4.7 per cent by the close.

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Most sectors advanced modestly on Wednesday. Industrial stocks led gains, rising around 1.4 per cent.

Declines in oil prices hurt shares of energy majors. US crude futures retreated more than 2 per cent overnight as the dollar rallied and traders took profits.

REUTERS

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