STOCKWATCH: Hong Kong financials, properties lower on interest rate concerns

HONG KONG (AFX-ASIA) - Financial and property shares were lower in early trade, on fading hopes that the U.S. will cut interest rates aggressively next week, following the release of stronger-than-expected February unemployment data, dealers said. At 10:32 am, the financial sub-index was down 482.28 points at 21,257.67, and the property sub-index fell 685.20 points to 18,562.32. The Hang Seng index was down 382.35 points at 13,812.00. Kitty Chan, associate director of Lippo Securities, said the stronger-than-expected employment data may dissuade the U.S. Fed from cutting rates aggressively next week. "Interest rate-sensitive financials and properties were victimised this morning," she said. Chan said property stocks have been over-bought since the government land auction last month, with investors now keen to lock in profit at the current level. HSBC was down 1.50 at 103.0, Bank of East Asia shed 0.50 to 18.70, and Hang Seng Bank dropped 0.95 to 90.25. Cheung Kong was down 2.50 at 89.50, Sun Hung Kai Properties was 3.0 lower at 80.0, and Henderson Land fell 1.70 to 44.10.

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