Hang Seng Index tumbles 4.15pc to reach two-month low
Hong Kong stocks slumped yesterday as oil approached US$100 a barrel and the United States Federal Reserve cut its growth forecast for the world's biggest economy.
The Hang Seng Index dropped 4.15 per cent to a two-month low of 26,618.19 points as investors joined a regionwide equity sell-off prompted by concerns about slowing growth and higher energy costs.
Slowing growth in the US 'is certainly making people nervous', said Renault Kam, a director at Atlantis Investment Management. 'High oil prices are also raising costs.'
The Hang Seng has lost 15.1 per cent so far this month as investors fret the US subprime crisis and signs of economic instability on the mainland will spark a market rout.
Oil was approaching US$100 a barrel yesterday, fuelled by a weakening US dollar and tight global supply, raising the spectre of soaring energy costs for companies and consumers.
