A gauge of Chinese stocks traded in Hong Kong headed for the highest since January after data showed mainland inflation quickened to the fastest pace in four months. Casino shares led declines on the Hang Seng Index.
Hong Kong stocks fell for a second day before the U.S. Federal Open Market Committee’s announces whether it will pare record stimulus. Tencent Holdings Ltd. drove the benchmark index lower, while city developers climbed.
Hong Kong stocks fell, with the benchmark index sliding to a four-month low, after a report yesterday on China’s manufacturing industry added to concern the world’s second-largest economy is weakening.
Options traders are turning bullish on Li & Fung Ltd., the Hong Kong-based supplier to Wal-Mart Stores Inc., betting on a revival of its American operations after the stock lost 61 percent of its value.