Dec 14 (Reuters) - Hong Kong’s benchmark stock index fell for the eighth straight session to a more than 2-month low on Monday, as investors braced for possibly higher U.S. interest rates later this week.
But the gauge managed to erase much of its earlier loss after a strong rally in China share markets helped offset the gloom in global markets.
The Hang Seng index fell 0.7 percent, to 21,309.85, the lowest close since Sept 30. But the China Enterprises Index , which tracks Chinese companies listed in Hong Kong, gained 0.1 percent, to 9,315.91 points.
The market got some inspiration from Shanghai, where stocks had their best day in a month, on factory activity data that offered some early evidence that China’s economy was stabilising.
There were also signs that investors were accumulating call warrants over the Hang Seng Index, as some investors bet on a rebound after the index’s eight-session losing streak.
But shares related to Fosun Group slumped, even though Fosun Chairman Guo Guangchang made his first public appearance on Monday since reports he had gone missing last week. The company said Guo was assisting authorities in an investigation.
Fosun International and Shanghai Fosun Pharmaceutical (Group) Co slumped 9.5 percent and 12 percent, respectively. (Reporting by Samuel Shen and Pete Sweeney; Editing by Jacqueline Wong)