Around the World's Markets: Hong Kong

STOCKS CLOSED lower as fears of higher US interest rates and last- minute concerns over banks' bad debt weakened a jittery market. The benchmark Hang Seng index closed down 227.18 points or 1.74 per cent at 12,866.52.

With nothing new to focus on, investors were selling bank shares ahead of the interim reporting season, nervous about banks' bad debt levels and on fears of a US rate rise, traders said.