Hong Kong stocks closed lower Tuesday despite an unexpected rise of a closely watched gauge of Chinese manufacturing activity.
In Hong Kong, the Hang Seng Index plummeted 118.42 points, or 0.5%, to 23,837.07, mainly dragged by casino stocks.
HSBC’s "flash" version of China manufacturing Purchasing Managers’ Index rose to 50.5 in September, up from a final read of 50.2 last month, and beating forecasts for a fall to 50.0 in a poll of economists by Bloomberg.
Macau casino operators sold off as several investment banks, including Deutsche Bank and Bank of America Merrill Lynch, have lowered their forecasts for Macau’s gaming revenues in recent days.
Melco Crown Entertainment Ltd. tumbled 4.4%, SJM Holdings Ltd. slid 3.9%, Galaxy Entertainment Group Ltd. declined 3.4%, Sands China Ltd. lost 3%, MGM China Holdings Ltd. skidded 2%, and Wynn Macau Ltd. fell 1.7%.
Meanwhile, Citic 21CN Co., which e-commerce giant Alibaba holds a stake, sank 13.4%, after Alibaba retreated in its second day of trading in New York overnight. China Dongxiang Group Co a company with a small stake in Alibaba, also dropped, by 1.3%.
Japanese markets were closed for a holiday Tuesday.
In other markets;
Shanghai’s CSI 300 index regained 20.54 points, or 0.9%, to 2,399.46
In Korea, the Kospi index dumped 10.36 points, or 0.5%, to 2,028.91
The Taiex index in Taiwan ditched 49.75 points, or 0.5%, to 9,084.90
In Singapore, the Straits Times STI Index inched up 1.52 points, or 0.1%, to 3,298.09
In New Zealand, the NZX 50 moved higher 5.15 points, or 0.1%, to 5,241.44
Australia’s S&P/ASX 200 added 52.77 points, or 1%, to 5,415.73
