Hong Kong: Shares fall as investors become cautious

[HONG KONG] Hong Kong shares were soft on Tuesday, as the mood of many Asia investors turned cautious in the wake of a month-long rally.

The Hang Seng index fell 0.7 per cent, to 20,011.58, while the China Enterprises Index lost 1.4 per cent, to 8505.22 points.

Hang Seng, the benchmark index, has bounced roughly 10 per cent off 3-1/2 year lows hit on Feb 12, aided by a recovery in oil and commodity prices and reduced concern about the global economy.

But investors have grown increasingly wary of the market's near-term prospects ahead of policy meetings of the European Central Bank and the US Federal Reserve.

On Tuesday, all main sectors fell in Hong Kong, with services and energy leading the declines.

REUTERS