Update | Hong Kong stocks end lower after brief tumble as Chinese bank shares take a hit
Concerns over North Korea and the possible impact of any US action on banks that do business with the reclusive state prompt the fall, but positive economic data helps Shanghai stocks rise for a fourth straight day
Hong Kong stocks ended lower on Wednesday, with the Hang Seng Index briefly tumbling more than 300 points to a two-week low after US stocks had closed sharply lower the previous day, worried by renewed North Korea tensions.
However, mainland Chinese stocks eked out gains to close higher for a fourth straight day, supported by rises in defence and technology shares.
The Hang Seng Index slid as much as 1.2 per cent before paring losses and closing down 0.5 per cent, or 127.59 points, at 27,613.76. The index ended flat on Tuesday following a three-day losing streak.
The Hang Seng China Enterprises Index, known as the H-share index, declined 0.6 per cent to 11,128.77. Daily turnover increased to HK$90 billion from Tuesday’s HK$77 billion.
Caution has been the watchword since North Korea conducted its sixth and most powerful nuclear test over the weekend, prompting investors to move into safe-haven assets such as gold, the Japanese yen and the Swiss franc.
“People want to dump their stocks,” said Louis Tse Ming-kwong, managing director of VC Asset Management.