Around the World's Markets: Hong Kong

STOCKS FELL as growing expectations of higher US interest rates hit a thin and skittish market already under pressure over China-Taiwan tensions and fears of a Chinese yuan devaluation. The Hang Seng closed down 348.76 points, 2.69 per cent, at 12,596.71.

"Most of the markets in the region are under selling pressure on fears of rising US rates," said one senior analyst. Ken Macalpin, institutional salesman with Kim Eng Securities, said some US fund managers were switching into higher-yielding US dollar assets.