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Hong Kong stocks fall as North Korea nuclear test stirs regional tension

The market has risen more than a quarter so far this year on the back of robust earnings growth at Chinese companies that reflects a strong recovery in China's economy.

By: Reuters | Published: September 4, 2017 2:47 pm
Hong Kong stock exchange The Hang Seng index fell 0.8 percent, to 27,740.26, while the China Enterprises Index lost 0.9 percent, to 11,182.67 points. (Representative Image)

Hong Kong stocks followed regional markets lower on Monday, after North Korea’s latest nuclear test heightened geopolitical tensions. North Korea on Sunday conducted its sixth and most powerful nuclear test, which it said was of an advanced hydrogen bomb for a long-range missile, prompting the threat of a “massive” military response from the United States if it or its allies were threatened.

The Hang Seng index fell 0.8 percent, to 27,740.26, while the China Enterprises Index lost 0.9 percent, to 11,182.67 points. The market has risen more than a quarter so far this year on the back of robust earnings growth at Chinese companies that reflects a strong recovery in China’s economy.

However, UBS strategist Gao Ting warned that rising raw material prices – which helped boost earnings at Chinese resource firms – could squeeze margins in certain downstream sectors such as power generation, petrochemicals, white goods, food processing and apparel. Most sectors fell on Monday, with properties and industrial firms among the biggest losers.

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  1. A
    Asish
    Sep 4, 2017 at 6:26 pm
    Any attempt or plan of attack on Japan should be treated as an attack on India. We should all be prepared, lock stock and barrell to deal with this North Korean madness. Security of Japan is crucial to the security of India. Any North Korean attack towards America will also deal with India joining America in eliminating North Korea. There is a United Nations commitment for peaceful coexistence and we should all cherish it.
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