Hong Kong stocks ended 0.60 percent lower Wednesday, in line with a broad regional downturn after the Dow and S&P 500 on Wall Street retreated from record highs. The benchmark Hang Seng Index shed 139.33 points to close at 23,151.71 on turnover of HK$48.16 billion (US $6.21 billion). The index rose more than one percent over the previous two sessions to touch a five-month high following advances in US stocks on Monday and after data showed two gauges of manufacturing activity improved in May.
But investors took a breather on Wednesday after Wall Street stepped back ahead of the release later in the week of US jobs figures for May. HSBC fell 0.37 percent to HK$81.20, Henderson Land Development sank 2.81 percent to HK$50.20 and Cathay Pacific Airways added 1.26 percent to HK$14.42. Also, Internet firm Tencent slipped 2.41 percent to HK$109.3, China Mobile slipped 0.91 percent to HK$76.2 and ICBC bank was unchanged at HK$5.14.
In China the benchmark Shanghai Composite Index fell 0.66 percent, or 13.48 points, to 2,024.83 on turnover of 57.5 billion yuan ($9.2 billion). The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 0.80 percent, or 8.45 points, to 1,044.43 on turnover of 78.9 billion yuan.
The losses come as traders remain on edge about the state of the world's number two economy despite the manufacturing data. "The signs of recovery at the macroeconomic level shown by statistics haven't been accepted by the market... Investors' confidence is far from recovered," Shen Jun, an analyst at BOC International, told AFP. He added the government's "mini-stimulus" is unlikely to exert significant influence on the market, while the loosening of monetary policy still falls short.
China last week announced it would trim the amount of cash some banks must keep in reserve as it looks to ease a lingering cash crunch crisis and kick-start the economy. Property firms slipped on continued concern about the sector as house prices slip. China Vanke slid 2.38 percent to 8.20 yuan and China Merchants Property Development was down 3.05 percent at 16.86 yuan. Among other firms China Shenhua Energy slid 0.63 percent to 14.24 yuan, Jilin Ji En Nickel Industry fell by its 10 percent daily limit to 14.38 yuan and China Molybdenum lost 5.2 percent to 6.08 yuan.
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