Hong Kong shares close morning lower

Share prices closed the morning lower on the back of falls on Wall Street, coupled with rising concerns about the US economy, after the US Federal Reserve shifted to an easing bias in its monetary stance, dealers said.

They said the market tone turned cautious as the Hang Seng August contract traded at a discount to the cash market, with investors also sidelined ahead of China Mobile's interim results announcement later today.

The Hang Seng index closed the morning down 156.47 points or 1.55% at 9,943.59, off a high of 10,064.63 and a low of 9,905.26.

The Hang Seng August contract was at 9,859 points.

The China Enterprises index was down 9.90 points at 1,897.28 and the CAC index 21.51 points lower at 1,114.82.

The GEM index was down 1.76 points at 140.53.

Peter Lai, associate director of OCBC Securities, said investors were pessimistic about the outlook for the local stock market, as the US Fed has shifted to a easing bias for its monetary policy, indicating a weak economic recovery.

"Trading activity was quiet and investors were reluctant to enter the market - the benchmark index will remain range bound at the current level in the short term," he said.

Kitty Chan, associate director of Lippo Securities, said market sentiment was cautious ahead of interim results from China Mobile, with investors also unnerved by the heavy discount in the Hang Seng August contract to the cash market.