Hong Kong Stocks Down, Tokyo Leads Asian Retreat

Hong Kong stocks ended with more losses on Thursday, in line with a broad sell-off across Asia following a negative lead from Wall Street with energy firms hit by falling oil price

The Hang Seng Index dropped 0.5 percent, to 28,461.

On the mainland, the Shanghai Composite Index sank just over 1 percent, to 2,901 while the Shenzhen Composite Index lost 1.6 percent, to 1,548.

Concerns about the uncertain global economic outlook affected most of the Asian markets. Tokyo led losses, sinking 2 percent as it was hit by a stronger yen and data showing another drop in exports as Japan feels the impact of falling demand and global trade uncertainty.

Sydney and Singapore each gave up 0.4 percent. Seoul fell 0.3 percent, with traders unmoved by the Bank of Korea's first interest rate cut in three years. The won edged up.

Taipei was off 0.3 percent and Mumbai eased 0.4 percent.

Energy firms across Asia tracked their US counterparts following another steep drop in oil prices overnight on Wednesday that came after government data showing a pick-up in US gasoline inventories. Oil was barely moved on Thursday.

The figures represent the weakest demand in five years, analysts said.

"Gasoline consumption is painfully weak given US consumers are in peak driving season, which will be invariably seen as the Grim Reaper of sorts," said Stephen Innes at Vanguard Markets.

"If we put this data set in the context of slowing China second-quarter GDP, where consumption was the most significant drag, the numbers do suggest that the global economic slowdown is being echoed through weaker global demand data. Definitely a bearish signal for oil demand." (AFP)