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Hong Kong stocks down 0.46%

Hong Kong - Hong Kong stocks fell 0.46% as nervous traders hope for a deal in Washington that will reopen the US government and avert a devastating debt default.

The benchmark Hang Seng Index eased 108.19 points to finish at 23 228.33 on turnover of HK$54.16bn ($6.99bn).

Global investors are focused on events on Capitol Hill as bickering US lawmakers barely have a day to agree a deal to end a shutdown that began on October 1 and increase the country's borrowing limit.

Economists warn that failure to lift the spending ceiling will cause havoc on international markets and cause a recession worse than 2008.

However, extremists in the Republica party refuse to pass a budget and hike borrowing unless President Barack Obama agrees to cuts to his flagship healthcare bill.

China Resources Land fell 1.71% to HK$22.95, Hang Lung Properties shed 1.55% to HK$25.35 but Henderson Land rose 0.33% to HK$46.30.

Chinese shares closed down 1.81%. The benchmark Shanghai Composite Index fell 40.34 points to 2 193.07 on turnover of 138.2bn yuan ($22.7bn).

The index was also weighed by concerns about the possible resumption of initial public offerings, which dealers fear could cause a share glut.

China's market regulator stopped approving initial public offers (IPOs) from late last year.

Media firms and companies linked to the newly opened Shanghai free-trade zone fell on profit-taking.

China Television Media slumped by its 10% daily limit to 19.93 yuan, while Zhejiang Daily Media Group tumbled 9.84% to 37.64 yuan.

Shanghai Zhangjiang High-Tech Park Development lost 9.90% to 8.74 yuan and Shanghai Waigaoqiao Free Trade Zone Development lost 9.52% to 46.19 yuan.

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