HK stocks down as oil rises, China markets fall

Hong Kong stocks fall as rising oil prices, weak Chinese markets hurt sentiment

• IBTimes RSS
• Print
• E-Mail
• digg
• Del.icio.us

The blue-chip Hang Seng Index lost 347.68 points, or 1.5 percent, to close at 22,514.92 points.

Many investors were keeping watch on oil prices, which steadied above $125 in Monday trade, aggravating worries about higher energy costs and inflation hurting company profits and national economies.

Meanwhile, a drop in Shanghai's main index, amid mounting skepticism over prospects for a rally ahead of the Beijing Olympic games, led to selling in mainland firms. And U.S. jobs and manufacturing data released Friday, portraying an economy that was still sluggish, was cause for more concern about a global slowdown.

"There is a general malaise about economies slowing down around the world," said Francis Lun, general manager of Fulbright Securities Ltd. in Hong Kong. "No one seems to be doing well."

As in China, airlines and refiners in Hong Kong lost ground as oil rose.

Cathay Pacific dropped 1.9 percent to HK$14.68, and China Southern tumbled 4.8 percent to HK$3.38.

Refiner China Petroleum & Chemical Corp., or Sinopec, shed 2.3 percent to HK$8.1. Its shares also were hurt by unconfirmed reports that it might buy London-traded Imperial Energy, an independent oil and gas exploration and production company with holdings mainly in western Siberia.

Worries about sluggish global trade dragged down stocks related to shipping.

Port operator Cosco Pacific plunged 5.9 percent to HK$13.18, while China Shipping Development shedding 4.8 percent to HK$23.65.