Hong Kong's shares close lowest in 2 weeks; investors remain sidelined during National holiday

Hong Kong's shares closed at their lowest in two weeks on Wednesday, as investors remained on the sidelines during the National Day holiday in China. However, a rebound in offshore yuan helped the market trim losses after Tuesday's sell-off. China's financial markets are closed for the National Day holiday and will resume trade on Oct. 8.

The Hang Seng Index closed 0.13 per cent lower at 27,091.26, its lowest since Sept. 18. Chinese H-shares listed in Hong Kong ended 0.29 per cent firmer at 10,786.17.

Traders say many investors took a more cautious approach after the sell-off in the previous session. Volume was down to HK$67bn from HK$90bn on Tuesday. A slightly stronger offshore yuan helped calm the market. The currency traded around 6.88 on Wednesday, after touching 6.90 on Tuesday afternoon. Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.12 per cent, while Japan's Nikkei index dropped 0.66 per cent.

The top gainers among H-shares were China Gas Holdings Ltd, which ended 4.21 per cent higher, followed by Dongfeng Motor Group Co Ltd, which closed up 3.42 per cent and CRRC Corp Ltd, which ended 3.01 per cent firmer. The three biggest H-shares percentage decliners were ZhongAn Online P & C Insurance Co Ltd, which ended 2.12 per cent weaker, Shenzhou International Group Holdings Ltd, which closed down 1.70 per cent and CSPC Pharmaceutical Group Ltd, which ended 1.22 per cent down.

The sub-index of the Hang Seng index tracking energy shares rose 0.36 per cent, while the IT sector slipped 0.32 per cent. The top gainer in Hang Seng was Swire Pacific Ltd, which ended 4.84 per cent firmer, while the biggest loser was AIA Group Ltd, which closed down 2.59 per cent.

(With inputs from agencies.)