Hong Kong stocks ended 0.80 percent down on Thursday, as concerns over the European economy and international conflicts grew. The benchmark Hang Seng Index fell 196.57 points to 24,387.56 at the close. Traders said sentiment had been hit by fears over European economy, geopolitical concerns, and the collapse of several huge mergers including 21st Century Fox's bid for Time Warner.
"A perfect storm of low volumes, geopolitical worries and pulled mergers is conspiring to keep markets on the back foot," said Chris Beauchamp, market analyst at IG trading group. In Hong Kong, casino stocks fared the worst. Galaxy Entertainment Group slipped 6.54 percent to HK$59.3, while Sands China dropped 6.03 percent to HK$52.2. Internet giant Tencent fell 3.5 percent to HK$128.30 - the biggest tumble for a month - after Chinese state media reported the government would impose curbs on online messaging services.
Shares in Standard Chartered fell 0.81 percent to close at HK$159.1 Thursday, after it confirmed it faces fresh US fines over alleged breaches in its anti-money laundering systems and "disappointing" first half results. Media reports said the new probe by New York's financial regulator followed allegations that it failed to spot millions of risky transactions flowing through its US operations.
Chinese shares ended down Thursday on profit-taking in stocks that have gained recently, dealers said. The Shanghai Composite Index dropped 1.34 percent, or 29.80 points, to 2,187.67 on turnover of 137.3 billion yuan ($22.3 billion). The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.92 percent, or 10.83 points, to 1,166.50 on turnover of 149.8 billion yuan.
"Stocks that had strong gains earlier pulled back," Haitong Securities analyst Zhang Qi told AFP. "But before China launches the Shanghai-Hong Kong connectivity programme in October, more funds are expected to flow into the market and drive up bluechip stocks," he said. China is expected to start a pilot programme to allow investors in Hong Kong and Shanghai to trade stocks on each other's exchanges in October, state media has reported.
Resources shares were hardest hit in Shanghai. Anyuan Coal Industry Group tumbled 7.32 percent to 5.19 yuan, lead and zinc producer Chengtun Mining sank 8.52 percent to 12.78 yuan and Xiamen Tungsten dropped 4.30 percent to 32.05 yuan. Financial shares also fell. In Shanghai, New China Life Insurance retreated 2.52 percent to 23.96 yuan and banking giant ICBC eased 1.68 percent to 3.52 yuan. Changjiang Securities lost 4.90 percent to 6.02 yuan in Shenzhen.
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