Hong Kong stocks decline

Hong Kong stocks ended down 0.49 percent on Friday after China raised interest rates for the first time in 18 months, but local property firms rallied in the afternoon, led by Cheung Kong (Holdings) Ltd.
Another bright spot was Dalian Port (PDA) Co Ltd. The operator of China's third-largest oil port jumped 68 percent above its initial offer price of HK$2.575, to close at HK$4.325 on its trading debut.
The benchmark Hang Seng index finished at 16,661.30, for a weekly loss of 1.5 percent. The China Enterprises index of H-shares fell 0.19 percent to 6,835.15, narrowing earlier losses, but still shedding 5 percent for the week.
Investors flocked to the city's property firms after the chairman of the Federal Reserve said the US central bank may pause its rate-raising campaign. The Hang Seng property sub-index outperformed, rising 0.69 percent to 21,244.16.
Cheung Kong (Holdings) Ltd rallied 1.9 percent to HK$87.35 and Wheelock and Co Ltd climbed 3.23 percent to HK$14.40.
Turnover was HK$57 billion ($7.3 billion), the second highest in the stock exchange's history, according to an exchange spokesman, and marking an 87 percent jump from Thursday's HK$30.5 billion.
"People recovered from the shock (of the rate rise) and panic selling and resumed buying," said Francis Lun, general manager at Fulbright Securities.
Some said Thursday's move by China's central bank was the first in a series of tightening measures to come.
"There should be more follow-up measures ahead," said Eddie Wong, chief Asian strategist at ABN Amro. "This time the government seems to be more aggressive ... raising interest rates at the beginning of the tightening cycle," Wong said.
The H-share index has gained 28 percent since the start of the year, outperforming a 12 percent gain in the Hang Seng index over the same period.
Power firms and commodities fell as investors bet on weaker demand amid expectations of a slowing economy. Huadian Power International Co Ltd slid 5.6 percent to HK$2.125 and Jiangxi Copper Co Ltd sank 5.2 percent to HK$8.15.
But Aluminium Corp of China Ltd (Chalco) bucked the trend to rise 4 percent to HK$7.7 after the world's second-largest alumina producer said on Friday it had raised its alumina spot price 8.7 percent to 5,650 yuan a tonne.
China Construction Bank Corp rose 2.3 percent to HK$3.35 and Bank of Communications Co Ltd gained 2.7 percent to HK$4.725. Mainland lenders are expected to generate wider margins thanks to the latest lending rate increase as deposit rates remain unchanged.