HONG KONG: Hong Kong stocks closed lower on Monday as the Federal Reserve prepares to hike interest rates, though casinos rallied after Macau's government unveiled regulatory reforms to the sector that were not as bad as feared.

The Hang Seng Index shed 0.68 percent, or 165.29 points, to 24,218.03.

Stock markets up on inflation peak hopes

The Shanghai Composite Index rose 0.58 percent, or 20.41 points, to 3,541.67, while the Shenzhen Composite Index on China's second exchange gained 1.54 percent, or 37.62 points, to 2,473.01.