Sharp changes in leading currencies have prompted investors to lock in recent gains
Hong Kong stocks fell for the third consecutive session yesterday, burdened by profit taking in China Unicom and weakness in other Asian markets such as a 4.23 per cent drop in Japan's Nikkei-225 Index.
Events in Hong Kong were overshadowed by a sharp drop in the US dollar to a 33-month low against the Japanese yen and the subsequent strengthening of Asian currencies, which investors used as an opportunity to lock in recent gains.
The Hang Seng Index finished 95.15 points, or 0.86 per cent, lower at 10,873.27 after recovering from an intraday low of 10,822.56.
China Unicom led the declines after a weekend report in a local newspaper quoting a company executive director as saying the mobile operator might not be able to meet subscriber targets for its code division multiple access network this year.
The company later denied the report and analysts downplayed its significance on yesterday's share price drop.
