Asian stocks fell and the US dollar firmed on Wednesday as investors grappled with political drama in France and Japan, while a prolonged U.S. government shutdown catapulted gold spot prices beyond US$4,000 (HK$15,200) per ounce for the first time.
The prospect of impending rate cuts from the Federal Reserve and safe haven demand due to economic and political worries this year have pushed gold prices higher. Spot gold rose 1 percent to US$4,021.22 per ounce, taking its gains for the year beyond 50 percent.
Hong Kong stocks lost around 130 points on the last day of China’s National Day Golden Week holiday.
The benchmark Hang Seng Index fell as much as 440 points to a low of 26,517, and slightly rebounded and ended at 26,829, down 128 points or 0.5 percent.
The tech gauge lost 36 points, or 0.55 percent, to 6,514 points.
The full day turnover recorded HK$173.8 billion, as mainland stock markets remain closed.
Chinese drugmaker CF PharmTech (2652) jumped 161 percent from its offer price of HK$14.75 to HK$38.50 on its trading debut.
Sasa (0178) gained 5 percent after reporting its turnover of second quarter ending September rose 8.4 percent.
Tencent (0700) declined 0.4 percent; Alibaba (9988) dropped 1.6 percent
Beijing-based luxury jeweler Laopu Gold (6181) and Chifeng Jilong Gold Mining (6693) rose 6 percent and 13 percent, respectively.
The shares of Celestial Asia Securities (1049) and its non-wholly owned subsidiary CASH Financial Services (0510) slid 12 percent and 44 percent, respectively, after resuming trading, due to the cessation of discussions regarding a potential transaction involving equity interests in CFSG.
Japan's Nikkei eased 0.35 percent, after hitting a record peak in the previous session. South Korea markets were also closed for a long holiday.
The US dollar index, which measures the US currency against six other units, hit its highest level since the end of August, although sentiment remained dim as the shutdown was due to enter its eighth day.
REUTERS AND STAFF REPORTER
