Regional stocks set trend as high oil prices and concern over US economic growth dampen sentiment
Hong Kong shares ended lower yesterday, tracking losses in the regional markets on concerns of slower economic growth in the United States and stubbornly high oil prices.
The Hang Seng Index tumbled as much as 118 points intraday, but the losses were trimmed in late trade, thanks to a successful government land auction of two sites in Ho Man Tin and San Po Kong, sold to Cheung Kong and Sun Hung Kai Properties respectively for a record $14.1 billion.
The index closed the day 0.4 per cent lower, shedding 53.54 points to 13,521.59.
'The land auction was good, but overseas Asian markets were suppressed by high oil prices,' said Ernie Hon, an equity analyst with ICEA.
Assuming US markets did not fall significantly yesterday, the auction could have a bigger impact on the broader Hong Kong market today. Only one of the two sites had been sold by the time the local market closed, Mr Hon added.
