SHANGHAI, March 3 Hong Kong's benchmark share
index closed at a one-month low on Friday, pulled down by
profit-taking pressure as investors fretted that anticipated
higher U.S. interest rates will raise borrowing costs.
Investors also kept in view China's annual parliament
meeting that kicks off on Sunday, which is widely expected to
send more signals of painful reform than market-friendly
The Hang Seng index fell 0.7 percent, to 23,552.72,
while the China Enterprises Index lost 1.0 percent, to
For the week, the Hang Seng lost 1.7 pct while the HSCE
declined 1.3 percent.
Remarks by Federal Reserve officials suggesting there's a
need for higher rates has seen the implied probability of a move
this month shoot to 74 percent, from just 30 percent at the
start of the week.
China Investment Securities (HK) said investors need to
watch closely the impact of a possible U.S. rate increase on
China's currency and bond markets, which bore the brunt after
the Fed's December hike.
All main sectors fell in Hong Kong, with rate-sensitive
property stocks among the biggest decliners.
(Reporting by Samuel Shen and John Ruwitch; Editing by Richard