Hong Kong: Stocks fall as financial, consumer firms retreat

[HONG KONG] Hong Kong stocks reversed earlier gains to end lower on Monday, weighed down by financial and consumer staples firms.

At the close of trade, the Hang Seng index was down 245.01 points or 0.96 per cent at 25,177.05. The Hang Seng China Enterprises index fell 1.88 per cent to 9,991.48.

The sub-index of the Hang Seng tracking energy shares rose 0.9 per cent, while the IT sector dipped 0.91 per cent, and the property sector slipped 0.67 per cent.

The top gainer on the Hang Seng was Geely Automobile Holdings, which gained 4.07 per cent, while the biggest loser was China Unicom Hong Kong, which fell 4.02 per cent.

Heavyweight banking shares retreated, after China's five largest state-owned banks reported their biggest profit falls in at least a decade and an increase in soured loans when announcing their half-year results on Sunday and last week.

Industrial and Commercial Bank of China, the world's largest commercial lender by assets, fell 3.6 per cent.

Consumer firms also dropped as investors booked profits following a strong rally.

The Hang Seng consumer staples index closed down 2.3 per cent, after rising as much as 1.7 per cent in early morning trade.

Bellwether Tsingtao Brewery ended down 5 per cent, after surging to an all-time high since listing in the city in July 1993.

China's factory activity grew at a slower pace in August as floods across southwestern China disrupted output, but the services sector expanded at a solid rate in a boost to the economy.

But some analysts fear that the recovery could stall, hurt by rising tensions between Washington and Beijing and on possibility of another wave of local infections in the winter.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.4 per cent, while Japan's Nikkei index closed up 1.12 per cent.

The yuan was quoted at 6.8548 per US dollar at 8.28am GMT, 0.14 per cent firmer than the previous close of 6.8646.

REUTERS