Volatile stocks in new fall

Hong Kong stocks endured a heavy sell-off yesterday as investors cashed in more than half of the 7.12 per cent climb made on Wednesday.

The Hang Seng Index fell 3.49 per cent - or 514.82 points - to 14,199.17, while China-related shares suffered heavier losses.

Turnover was a relatively light $24.95 billion.

Around the region, Malaysia's decision to try to prop up its faltering equity market with a US$20 billion (HK$154.7 billion) fund triggered currency nose-dives.

As international investors poured scorn on the scheme, the ringgit plunged through the three per dollar level to a fresh low of 3.05.

The Malaysian currency has lost 20 per cent of its value since early July, but there was no sign yesterday of central bank intervention.