Nuhey News

We talk about the MARKET

The Bank of Korea holds rates while Hong Kong stocks decline by approximately 2% to their lowest level this year

The Hong Kong Hang Seng Index fell about two percent on Wednesday to its lowest level this year, dragged down by losses in financials and property stocks. The move came after the Bank of Korea held its key interest rate steady at 1.25 percent on Tuesday, which raised speculation that economic growth would be slower than expected.

The benchmark index closed 1.97 percent lower at 24,476.85 points, its lowest level since December last year.

The banking sector was the biggest drag, with HSBC shedding 1.8 percent and Standard Chartered 1.3%. Property developers fell across the board, led by Wharf REIC slumping 4.7 percent and Sun Hung Kai Properties Ltd falling 0.7 percent.

Consumer stocks also slipped, with beverage producer Uni-President Enterprise Corp. off 1.9 percent. Casino operator Galaxy Entertainment Group lost 1.8 percent.

Elsewhere, the Shanghai Composite Index ended 1.3 percent lower at 3,262.38, while the blue-chip CSI300 index was down 1.2 percent.

The index losses come after data on Tuesday showed China’s producer prices fell at the fastest pace in three years in June, the sixth consecutive month of declines, suggesting weak demand in the world’s second-largest economy is weighing on raw material and factory-gate prices.

But some sectors bucked the trend, with healthcare stocks rising 1.9 percent and telecoms up 1.3 percent as investors scooped up attractive valuations.