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Hong Kong Stocks Fall, Led by Tech Shares Ahead of Fed Decision

Written By Kontak Perkasa Futures on Wednesday, September 18, 2013 | 9:37 AM


Bloomberg(18/9) -- Hong Kong stocks fell a second day as technology and energy companies led declines ahead of the Federal Reserve’s announcement on whether it will pare stimulus.

The Hang Seng Index fell 0.1 percent to 23,147.39 as of 9:37 a.m. in Hong Kong. The Hang Seng China Enterprises Index, also known as the H-share index, slid 0.1 percent to 10,640.97.

The H-share index entered a bull market last week after rebounding more than 20 percent from a June low, while the Hang Seng Index erased its 2013 loss. Shares climbed as China economic data including exports and factory output boosted confidence in the world’s second-biggest economy. Hong Kong’s equity benchmark traded at 11.1 times estimated earnings yesterday, compared with 15.4 for the Standard & Poor’s 500 Index.

 Bank of America Merrill Lynch last week joined Goldman Sachs Group Inc., JPMorgan Chase & Co. and Deutsche Bank AG in raising predictions for economic expansion in China. The government has defended its target of 7.5 percent annual growth.

 Futures on the S&P 500 gained 0.1 percent today. The U.S. equity gauge added 0.4 percent yesterday in New York, sending the index toward a record high, as Microsoft Corp. announced a $40 billion buyback.

 The Federal Open Market Committee is considering whether it will taper $85 billion in monthly bond buying. Purchases will probably be cut by $5 billion, according to a Bloomberg survey of economists, less than the $10 billion reduction predicted earlier.
Written by: Kontak Perkasa Futures
PT.Kontak Perkasa Futures, Updated at: 9:37 AM
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