Hong Kong stock benchmark down as U.S. rate hike looms

Hong Kong stock benchmark down as U.S. rate hike looms

Last Updated: Thu, Nov 24, 2016 14:00 hrs

Nov 24 (Reuters) - Hong Kong's benchmark index retreated on Thursday despite Wall Street maintaining a solid run, with investors in emerging markets shifting attention back to the impact of a surging U.S. dollar, and an increasingly likely U.S. rate hike next month.

The Hang Seng index fell 0.3 percent, to 22,608.49, but the China Enterprises Index gained 0.1 percent, to 9,678.77 points.

Performance was mixed on Thursday.

Strength in raw material shares - bolstered by advancing commodity prices - is offset a correction in energy and utility stocks.

Investors expect President-elect Donald Trumpt to adopt economic policies that will boost growth, but also fuel inflation, which will result in more interest rate increases than had previously been foreseen.

Latest data signalling a brighter U.S. economic outlook heightened already high expectations of a rate cut in December, but it is the prospect of more to come that lies behind rising U.S. yields and the surging dollar, which is raising fears of capital outflows from Asia's emerging markets.

Performance was mixed on Thursday.

Strength in raw material shares - bolstered by advancing commodity prices - offset a correction in energy and utility stocks. (Reporting by Samuel Shen and John Ruwitch; Editing by Simon Cameron-Moore)



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