HK Joins Asian Retreat As N Korea Spooks Investors

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2018-05-16 HKT 16:59

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  • Pyongyang's threat to pull out of planned N Korea-US summit unnerved investors across Asia. File photo: RTHK

    Pyongyang's threat to pull out of planned N Korea-US summit unnerved investors across Asia. File photo: RTHK

Hong Kong stocks ended on Wednesday in negative territory following a sell-off on Wall Street fuelled by worries about the prospect of higher US interest rates.

The Hang Seng Index dipped 0.1 percent, to close at 31,110.

On the mainland, the benchmark Shanghai Composite Index dropped 0.7 percent, to 3,169 and the Shenzhen Composite Index lost 0.4 percent, to 1,832.

Most other regional markets fell as investors were given a spook by North Korea's threat to pull out of a historic summit over US demands.

Tokyo ended 0.4 percent lower after data showed Japan's economy contracted in January-March for the first time in two years.

Wellington sank more than 1 percent, while Manila, Bangkok and Jakarta were also well down. However, Sydney rose 0.2 percent and Seoul edged up 0.1 percent, while Singapore and Taipei were also slightly higher.

The dollar, which benefits from higher US rates, was holding above the 110 yen mark and around its highest mark since early February. The greenback also surged against high-yielding currencies, with the South Korean won 0.5 percent off and Australia's dollar 0.7 percent lower.

The euro is around its weakest level this year, with a series of soft economic data out of the eurozone denting the prospects of an end to the European Central Bank's crisis-era stimulus. The pound continues to be dampened by Brexit uncertainty. (AFP)

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