FEARS of another interest rate rise, coupled with poor results for the Bank of East Asia, dampened stocks yesterday.
The Hang Seng Index lost 71.16 points, or 0.77 per cent, to close at 9,117.66. Turnover was $3.17 billion.
US Federal Reserve chairman Alan Greenspan's comments that rates might again be raised sent a chill through the market, weakening the resolve of some of the more bullish players.
After falling for more than a week, the United States long-bond yield has sparked back up in the last two days, from 7.46 per cent on Tuesday to 7.56 per cent yesterday.
While a rate rise is not expected until next month, the seed of fear has been planted and concerns will continue to grow until the rate is increased.
GT Management investment manager Simon Male said the market consensus saw rates rising by 50 basis points.
