SHANGHAI Oct 12 Hong Kong stocks fell on
Wednesday as global markets enter a period of rising
uncertainty, with investors bracing for the U.S. presidential
election, a possible U.S. rate hike and bruising negotiations on
Britain's exit from the European Union.
The Hang Seng index fell 0.6 percent to 23,407.05
points, while the China Enterprises Index lost 1.3
percent to 9,673.20.
Hong Kong stocks followed Asian markets lower after U.S.
stocks dropped over 1 percent overnight, with the dollar and
Treasury yields rising on growing expectations of a U.S. rate
hike in December.
The recent slump in the British pound, triggered by fears of
a costly and possibly chaotic "hard Brexit", also curbed risk
Some investors also attributed the market weakness to
renewed fears of yuan depreciation, which would reduce the
appeal of Hong Kong-listed mainland companies, whose assets are
denominated in the Chinese currency.
All main sectors fell, with raw material shares
leading the decline.
(Reporting by the Shanghai Newsroom; Editing by Kim Coghill)