Hong Kong index sheds 2.4 % in morning trade
Hong Kong's benchmark index tumbled 2.42 percent Monday morning, hurt by weakness on Wall Street and inflationary pressures in the U.S.
By Agencies |
HONG KONG: Hong Kong's benchmark index tumbled 2.42 percent Monday morning, hurt by weakness on Wall Street and inflationary pressures in the U.S.
The benchmark Hang Seng Index shed 667.1 points, or 2.42 percent, to 26,896.54 points by midday, after falling as low as 26,694.80 during the session.
Property stocks sank as strong inflation data out of the United States dampened hopes the U.S. Federal Reserve would continue to trim lending rates. Hong Kong's currency is pegged to the U.S. dollar and a rate cut in the U.S. is usually matched by Hong Kong's monetary authority and local banks, which could benefit property companies.
Sun Hung Kai Properties, Wharf, Hang Lung Properties and New World Development all lost more than 5 percent in the morning session.
Still, some analysts said now was a good time for bargain-hunting, especially in property stocks as the Hong Kong property market was still in an upward trend.
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On Friday, the U.S. Labor Department reported a stronger than expected 0.8 percent jump in consumer price inflation, adding to uncertainties about the U.S. economy. The Dow Jones industrial average fell 178.11, or 1.32 percent, on Friday to 13,339.85. Download
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