HK Stocks Close In The Red On Rate Jitters

Local shares were subdued on Wednesday after the US treasury secretary rattled markets with her comments on interest rates.

Tech stocks led Wall Street to a negative finish overnight, after Janet Yellen said rates may have to rise to stop the world's biggest economy from "overheating".

The Hang Seng Index here in Hong Kong took the cue and started the day more than 100 points lower. It managed to change direction to gain as many as 120 points, but could not hold its position and went on sliding after lunch. The benchmark wrapped up the day down 139 points, or 0.5 percent, at 28,417.

Market turnover reached HK$101.2 billion.

Tech shares were among the day's worst underperformers. The Hang Seng Tech Index slipped more than two percent. Alibaba retreated 2.3 percent. Tencent and Meituan each lost more than one percent.

But the biggest blue-chip loser was Haidilao. The mainland hotpot chain sank six percent.

Mainland and local banks bucked the trend. Hang Seng Bank jumped 3.4 percent to become the winner on the benchmark. Bank of Communications rose 3.3 percent. China Construction Bank added 1.7 percent.

Markets in the mainland, Japan and South Korea remained shut for holidays.

Shares elsewhere in the region were mixed. Australia put on 0.4 percent. But Taiwan slipped 0.5 percent. Singapore dropped 0.8 percent.

In currencies, the US dollar reached its highest levels in more than two weeks as fears of rate increases hampered risk sentiment.