Hong Kong stocks dropped, with the Hang Seng Index (HSI) falling for a second day, on concern China’s economic slowdown will deepen amid waning export demand as Europe’s leaders struggle to solve the region’s debt crisis.
Techtronic Industries Co. (669), the maker of Ryobi power tools that counts North America as its No. 1 market, fell 2.8 percent. Esprit Holdings Ltd., a Hong Kong-based clothier that gets about 79 percent of sales from Europe, slid 0.9 percent. China Resources Cement (1313) Holdings Ltd. decreased 5.9 percent after posting weaker first-half earnings.
The Hang Seng Index fell 0.3 percent to 20,081.36 at the close, having swung between gains of as much as 0.3 percent and losses of 0.5 percent. The gauge climbed 2.4 percent last week on speculation China will add to economic stimulus after export growth collapsed, industrial production unexpectedly slowed and inflation decelerated. The Hang Seng China Enterprises Index of mainland companies lost 0.9 percent to 9,814.59 today.