Hong Kong stocks drop for 2nd session amid virus uncertainty

Hong Kong shares extended losses on Monday, as the rising severity of the coronavirus outbreak in mainland China, where it has killed more than 900 people, fanning fears of a slowdown in global economic growth.

** At the close of trade, the Hang Seng index was down 0.6% at 27,241.34, falling for a second straight session. The Hang Seng China Enterprises index fell 0.5%. ** The sub-index of the Hang Seng tracking energy shares eased 0.3%, the IT sector dropped 1.2%, the financial sector fell 0.5% and property shares lost 0.4%. ** The top gainer on the Hang Seng was Hengan International Group Company Ltd, which gained 4.9%, while the biggest loser was Shenzhou International Group Holdings Ltd, which fell 4.2%. ** Apple smartphone maker Foxconn was not allowed to resume production in its plant in the southern Chinese city of Shenzhen that had been shut due to the coronavirus outbreak, a person with direct knowledge of the matter told Reuters on Monday. ** The death toll in mainland China rose to 908 as of Sunday, the National Health Commission said on Monday. The death toll of 97 on Sunday was the largest in a single day since the outbreak was detected in December. ** The benchmark Hang Seng rose for four days last week as it rebounded from two-month lows before the market ran out of steam last Friday. ** Analysts at Essence International attributed the fall on Monday to technical factors, and urged investors in a note to "wait for fresh news while there is no clear signal in the external environment." ** Trading volume thinned from the increase last week. About 1.61 billion Hang Seng index shares were traded, compared with the six-month high of 2.5 billion hits on Feb. 4. ** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.4%, while Japan's Nikkei index closed down 0.6%. ** At close, China's A-shares were trading at a premium of 24.19% over Hong Kong-listed H-shares.

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