Bloomberg News

Hong Kong Stocks Retreat for Second Day Amid Europe Concern

November 16, 2011

Nov. 16 (Bloomberg) -- Hong Kong stocks declined for a second day after Italian bond yields surged above a threshold that prompted other European states to seek bailouts, stoking concern the region’s debt crisis is spreading.

HSBC Holdings Plc, Europe’s largest lender, declined 1.4 percent in Hong Kong. Esprit Holdings Ltd., the clothier that counts Europe as its biggest market, sank 4.2 percent after it was removed from the MSCI Hong Kong Index. First Pacific Co., the food, utilities and resources company controlled by billionaire Anthoni Salim, gained 1.9 percent after being added to the gauge.

“The European situation has gone from bad to worst and that’s going to continue to put pressure on global equities,” Nader Naeimi, a Sydney-based strategist for AMP Capital Investors Ltd., said on Bloomberg Television. AMP manages nearly $100 billion.

The Hang Seng Index fell 0.8 percent to 19,198.51 as of 10:00 a.m. open in Hong Kong, with three stocks falling for each that rose in the 46-member benchmark. The gauge slumped 3.6 percent last week, the biggest weekly decline since Sept. 23, as Europe’s sovereign-debt crisis stirred political turmoil across the region, resulting in Italian Prime Minister Silvio Berlusconi and Greek Prime Minister George Papandreou stepping down.

The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong dropped 1 percent to 10,536.80.

--Editor: Jim Powell.

To contact the reporter on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net.

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net


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