Around the World's Markets: Hong Kong

THE HANG SENG index closed down 130.61 points at 7,445.96, brought back from earlier lows on hopes that the government may re-enter the market to prevent it falling below 7,200, dealers said.

HSBC, which accounts for a quarter of the index, fell 3.5 per cent at one point as investors fled European banks facing losses in emerging markets. Unemployment in the region rose to a 15-year high of 5 per cent between June and August.