Sept 6 (Reuters) - Hong Kong stocks fell on Wednesday, echoing declines in other global markets as rising tensions on the Korean peninsula prompted investors to take profits on this year’s strong rally.
The Hang Seng index fell 0.5 percent to 27,613.76 points, while the China Enterprises Index lost 0.6 percent to 11,128.77.
The benchmark index has gained some 25 percent so far this year.
Geopolitical concerns continued to simmer following North Korea’s biggest-ever nuclear test on Sunday. Pyongyang is ready to send “more gift packages” to the United States, one of its top diplomats said on Tuesday.
UBS said in its monthly Asia Pacific investment report that although “U.S.-North Korea relations have perhaps reached their tensest point in decades”, military conflict is “unlikely”.
UBS strategist Gao Ting said on Wednesday that Hong Kong stocks, which are vulnerable to U.S. equity market volatility, face uncertainty around issues such as the U.S. debt ceiling, President Donald Trump’s tax reforms and rate moves by the Federal Reserve.
Most sectors lost ground on Wednesday, with financial shares among the biggest decliners. (Reporting by Samuel Shen and John Ruwitch; Editing by Kim Coghill)