Dollar's fall below 100 yen, Wall St slump depress markets
Hong Kong stocks yesterday suffered their biggest sell-off since the Lunar New Year after further signs of turmoil in global financial markets sent the US dollar reeling to a 12-year low against the Japanese yen.
The Hang Seng Index fell 1,121.12 points or 4.79 per cent to a seven-week low of 22,301.64. All but three of the 43 blue chips closed lower, joining an equity slump across Asia.
The global rout continued on Wall Street yesterday after a report showed United States retail sales fell unexpectedly last month, signalling the nation's economy has entered a recession.
The Dow Jones Industrial Average was down 0.57 per cent at 12,041.53 points at midday in New York while London's FTSE 100 Index was 1.2 per cent lower at 5,707 points in late afternoon trade.
Gold passed the US$1,000 an ounce for the first time yesterday, lifted by a falling dollar, strong oil prices and worries about economic growth.