Hong Kong Stocks Open Slightly Lower

Hong Kong stocks began on the back foot on Wednesday following a negative lead from Wall Street on a disappointing forecast from Home Depot and US retail sales data for April pointing to softer consumer spending. Uncertainty about interest rates and US debt limit negotiations also weighed on sentiment.

The Hang Seng Index dipped 0.1 percent to 19,956.

The Shanghai Composite Index dropped 0.27 percent, to 3,281, while the Shenzhen Composite Index fell 0.23 percent, to 2,014.

On Wall Street, Home Depot declined over 2 percent as one of the biggest drag on both the Dow Industrials and S&P 500 after the home improvement retailer cut its annual sales forecast and projected a steeper-than-expected decline in profit.

The US Commerce Department reported retail sales rose 0.4 percent last month, well short of estimates for an increase of 0.8 percent. But core retail sales rebounded, a figure excluding automobiles, gasoline, building materials and food services. (AFP/Reuters)