TOKYO: Hong Kong stocks dropped, with the Hang Seng Index heading for its biggest monthly decline in eight months, as concern grew about Greece’s future in the euro and the health of Spanish banks.
The Hang Seng Index slipped 1.3% t to 18,441.90 as of 10:10 a.m. in Hong Kong, with all but four shares declining in the 48-member gauge.
The benchmark index is heading for a 13% decline this month, the most since September, amid concern Europe will struggle to contain its sovereign-debt crisis and signs the economic slowdown in China is deepening.
Trading volumes were about 125% higher than the 30- day moving average, according to data compiled by Bloomberg News. The Hang Seng China Enterprises Index of mainland stocks decreased 1.5% to 9,544.24.
Esprit Holdings Ltd., a clothier that counts Europe as its biggest market, dropped 2.1% . Li & Fung Ltd., a supplier of toys and clothes to retailers including Wal-Mart Stores Inc., sank 4.4% after US home sales fell.
Agricultural Bank of China Ltd., the nation’s third-largest lender by market value, fell 2.2%, extending losses for a second day, after the the bank said its Vice President Yang Kun is under investigation. (Bloomberg/T05)