Hong Kong: Shares close to 2-month low

[HONG KONG] Hong Kong's benchmark stock index fell for the eighth straight session to a more than 2-month low on Monday, as investors braced for possibly higher US interest rates later this week.

But the gauge managed to erase much of its earlier loss after a strong rally in China share markets helped offset the gloom in global markets.

The Hang Seng index fell 0.7 per cent, to 21,309.85, the lowest close since Sept 30. But the China Enterprises Index , which tracks Chinese companies listed in Hong Kong, gained 0.1 per cent, to 9,315.91 points.

The market got some inspiration from Shanghai, where stocks had their best day in a month, on factory activity data that offered some early evidence that China's economy was stabilising.

There were also signs that investors were accumulating call warrants over the Hang Seng Index, as some investors bet on a rebound after the index's eight-session losing streak.

But shares related to Fosun Group slumped, even though Fosun Chairman Guo Guangchang made his first public appearance on Monday since reports he had gone missing last week. The company said Guo was assisting authorities in an investigation.

Fosun International and Shanghai Fosun Pharmaceutical (Group) Co slumped 9.5 per cent and 12 per cent, respectively.

REUTERS