Hong Kong shares drop after dismal US jobs data
HONG KONG (AP) – Hong Kong’s main stock index fell nearly 3 percent Monday after U.S. unemployment hit its highest in 16 years.
The blue-chip Hang Seng Index fell for a fifth straight session, closing down 406.44 points, or 2.8 percent, at 13,971.
Investors were unnerved by U.S. data released Friday that showed the unemployment rate in the world’s largest economy increased to a worse-than-expected 7.2 percent in December from 6.8 percent in November.
“The macro economy is still weak, and the market isn’t as confident about the rescue plans,” said Linus Yip, strategist at First Shanghai Securities, referring to President-elect Barack Obama’s plan for a stimulus package worth hundreds of billions of dollars.
Airlines were among the hardest hit after China Eastern Airlines Ltd., one of three major state-owned carriers, reported it lost 6.2 billion yuan ($906 million) on fuel price hedging in 2008.
China Eastern dropped 7.1 percent to 1.04 Hong Kong dollars (13.4 cents). Air China lost 9.4 percent to HK$2.02, while China Southern was down 6.7 percent at HK$1.25.
Sinking commodities prices hurt materials counters, with Chinese oil producer off 4.7 percent at HK$7.1.
On the Net:
Stock Exchange of Hong Kong: http://www.hkex.com.hk
About This Post
