Hong Kong Hang Seng Retreats 0.28% On U.S. Federal Reserve Outlook
The Hong Kong Hang Seng Index Thursday fell back 0.28%, as traders mulled Wednesday comments by Federal Reserve Chairwoman Janet Yellen that the U.S. economy appeared stronger, suggesting a rate hike is in order. The Hong Kong dollar is pegged to the U.S. dollar, so Fed tightening has a direct impact on the exchange rate of the Hong Kong currency and country competitiveness,
The broad gauge Hang Seng fell 62.88 to 22,417.01, as losers outnumbered gainers 34 to 13.
Leading the upside on a down day were energy driller China Shenhua (1088:HK), up 1.12% on hopes of OPEC tightening; followed by New World Development (17:HK), up 1.03%; and then China Mengnui Dairy (2319:HK), up 0.49%.
On the downside were Henderson Land Development (12:HK), up 2.04%; followed by mobile-phone service China Unicom (762:HK), off 1.65%.
On the mainland, the Shanghai Stock Exchange Composite Index (SHCOMP) rose 1.35% to 3,584.82.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.