** The Hang Seng Index ended 1.18% lower, while the Hang Seng China Enterprises Index fell 1.36%.
** Asian stocks fell for a second straight session, as global investors contended with signs of a softening U.S. economy ahead of a widely expected Federal Reserve interest rate hike later in the day.
** The International Monetary Fund (IMF) raised Asia's
economic forecast on Tuesday as China's recovery underpinned
growth, but warned of risks from global market volatility driven
by Western banking sector woes.
** Overnight, stocks of U.S. regional banks extended losses
from Monday after the seizure and auction of First Republic Bank . Banking stocks in Hong Kong also fell.
** U.S. job openings fell for a third straight month in
March and layoffs increased to the highest level in more than
two years, suggesting some softening in the labour market
** On Wednesday the Federal Reserve is expected to raise its
benchmark overnight interest rate by another 25 basis points to
the 5.00%-5.25% range before potentially pausing their
tightening cycle.
** With China's A share market remaining closed investors
have switched their focus on the U.S. market, analysts said.
** HSBC's Hong Kong shares edged up 0.34% after
declining earlier, supported by its strong first-quarter
results, as it announced an up to $2 billion buyback plan on
Tuesday.
** Hang Seng Bank fell 1.18%, while Standard
Chartered dipped 1.22%.
** Hong Kong's interbank rates jumped, as traders braced for
a U.S. interest rate hike.
** The three-month Hong Kong Interbank Offer Rate (HIBOR) jumped 18.9 basis points to 3.89929%, its sharpest
one-day leap in nearly two years.
(Reporting by Hong Kong Newsroom; Editing by Sonia Cheema and
Rashmi Aich)
