Hong Kong shares close volatile session lower ahead of more US data

Hong Kong shares close volatile session lower ahead of more US data

	Published : Tue, 08 Jan 2008 09:08 By : Agencies Print this Story

HONG KONG (Thomson Financial) - Hong Kong shares closed Tuesday lower as the market turned negative in late session, reversing early gains, with caution re-emerging ahead of the release of additional key economic data in the US to provide clearer indications of where the world's largest economy is headed.

'There is an absolute lack of direction in the market as of now,' said Peter Lai, director, DBS Vickers.

'We saw profit-taking after the index moved higher as investors were awaiting important news from the US like home sales, consumer credit and crude oil inventory,' Lai said.

The Hang Seng Index closed down 66.59 points or 0.3 percent at 27,112.90 after moving up to 27,637.60 in the morning.

Turnover was 114.87 billion Hong Kong dollars.

Property stocks led the slump as investors locked in gains on Monday's rally. The sub-index was down 457.39 points or 1.2 percent lower at 37,995.07.

Shares in Air China fell 32 cents or 3,04 percent to 10.20 dollars after shareholders in China Eastern Airlines rejected Singapore Airlines-Temasek's bid to buy a 24 percent stake in the company. Investors were hoping today's shareholder meet would see the beginning of a bidding match between the Singaporean duo and Air China's parent China National Aviation Corp, the other suitor.

(1 US dollar = 7.80 Hong Kong dollars)

parvathy.ullatil@thomson.com

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