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Tuesday, June 28, 2016, 19:34

Analysts fear US rate hike more than Brexit fallout

By Duan Ting

HONG KONG — The impact on Hong Kong of Britain's departure from the European Union has not been that dramatic while the likely US interest rate hike and the current consumer downturn may be foremost concerns for the stock and property markets, said Josh Crabb, head of Asian equities at Old Mutual Global Investors.

The global markets reacted with volatility to last week’s “Brexit” vote. Most Asian markets lost ground on Tuesday but managed to close higher than global peers.

Hong Kong's benchmark Hang Seng Index closed at 20,259.13 after falling 2.92 percent, while the Shanghai Composite Index rose slightly, by 0.58 percent to 2,912.56.

Speaking at a media briefing on Tuesday, Crabb said that, compared with the current unstable situation in Europe, Asian emerging markets can provide more investment opportunities.

He added that at the current stage, investors are more likely to hold back and wait to find safe havens such as Asian bonds and equities.

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