HK, Regional Shares Slip As Dollar Climbs

Concerns over the pace of the global economic recovery and jitters over an end to ultra-loose monetary policies sent regional stocks lower and the US dollar higher on Thursday, with the Hang Seng Index among the underperformers.

The Hong Kong benchmark took its cue from Wall Street to open in the red, after US stocks finished lower for a second day on the Fed's indication that it could start tapering its financial support by the end of the year.

The blue-chip index widened its losses during the day before closing down 550 points, or 2.1 percent, at 25,316.

Market turnover was HK$164.9 billion.

Leading losses on the benchmark was Meituan, which sank 7.1 percent as investors continued to fret about China's regulatory crackdown and dumped tech shares.

Tencent retreated 3.4 percent to its lowest in more than a year, after a number of banks trimmed its target price and despite the tech giant posting forecast beating second-quarter profits.

Alibaba tumbled 5.5 percent, and Xiaomi declined 2.4 percent.

But Sino Biopharmaceutical bucked the trend and jumped 2.4 percent to become the biggest blue-chip winner, after the company said it could see a five-fold surge in interim profits.

The Shanghai Composite Index eased 0.5 percent, while the blue-chip CSI300 index shed 0.7 percent. But the Shenzhen Composite edged up 0.2 percent.

Taiwan fell 2.7 percent.

Japan's Nikkei gave up more than one percent, the Kospi in South Korea dropped nearly two percent, shares in Australia were 0.5 percent weaker, and Singapore dropped 1.4 percent.

In currencies, the US dollar strengthened to 10-month highs as investors rushed to the currency on the prospects of rate hikes.