HONG KONG: Hong Kong shares closed 0.14 percent higher Tuesday on late bargain-buying after the index, which had fallen for the past four sessions, spent most of the day in negative territory.
The benchmark Hang Seng Index edged 25.74 points up to 18,251.59 on turnover of HK$58.05 billion ($7.45 billion).
The market bounced back after earlier losses caused by concerns over the eurozone and fresh worries about the US debt after a Congressional committee failed to agree on a plan to cut the country's $15 trillion deficit.
South China Research said the collapse of the talks and uncertainties in Europe -- made worse by growing concerns over France's rising borrowing costs -- "is likely to exacerbate (Hong Kong) market conditions in the short run."
Moody's Investors Service's said it may change its stable outlook on France's triple-A rating to negative in the coming months.
Chinese online game and social-networking services company Tencent was the Hong Kong index's best perfovY'King 3.4 percent to HK$158.80, on top of its 2.3 percent gain Monday.
Fashion retailer Esprit tumbled 3.2 percent to HK$8.38 due to its exposure to European markets. It has fallen more than 77 percent so far this year.
Cathay Pacific fell 2.1 percent to HK$12.80 while Macau casino stocks outperformed the index, led by Sands(China's 5.3 percent jump to HK21.05.
Chinese shares closed down 0.10 percent. The Shanghai Composite Index, which covers A and B shares, was 2.50 points off at 2,412.63 on turnover of 50.7 billion yuan ($8.0 billion).
"The continued risk in the eurozone credit markets and the deadlock in US congressional deficit talks are having an impact on the market today," Zhang Yanbin, an analyst at Zheshang Securities, told Dow Jones Newswires.
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