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Monday, August 29, 2016, 16:36

HK shares fall on firmer US rate hike views

By Reuters

Hong Kong stocks fell on Monday after US Federal Reserve Chair Janet Yellen indicated an interest rate increase remains on the cards for this year.

The Hang Seng index fell 0.4 percent, to 22,821.34, while the China Enterprises Index lost 0.6 percent, to 9,497.82 points.

Yellen's relatively upbeat tone in a speech on Friday at the Fed's annual monetary policy conference in Jackson Hole, Wyoming, weighed on Hong Kong stocks, which are more vulnerable to global money flows.

The Fed chief said the case for a rate increase had strengthened in recent months, with a lot of new jobs being created, while economic growth looked likely to continue at a moderate pace.

All major sectors, expect for IT, lost ground, with consumer services stocks leading the decline, falling 1.5 percent.

Bucking the trend, Chinese automaker BYD Co Ltd's shares in Hong Kong rose 2.5 percent after it predicted an up to 91 percent profit increase in the first nine months of the year, as government policies drive green car sales.

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