Hong Kong shares fall after one-day holiday

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Hong Kong shares fall after one-day holiday

SHANGHAI -- Hong Kong shares fell after a one-day holiday, playing catch-up with falls on Wall Street.

Hong Kong's Hang Seng Index fell by 4.1 percent, before recovering some losses to end trading down 1.8 percent. The Hang Seng Tech Index fell 3.2 percent.

The chief strategist at First Shanghai Group, Linus Yip, said all eyes are on US stocks.

If Wall Street falls, it would be a drag on global markets, including Hong Kong and China. Over the past week, there has been a lot of money flowing into Hong Kong stocks due to bargain-hunting, according to Yip.

Hong Kong shares have corrected much earlier than US stocks, so their valuation is much lower, he said.

Hang Seng trades at less than 10 times earnings, compared to more than 20 for the S&P 500.

The Hong Kong dollar touched 7.85 per dollar briefly in the currency market, the weak end of its trading band on Tuesday.