Hong Kong stocks post biggest loss in 6 months

Hong Kong stocks posted their biggest single-day percentage loss in six months on Tuesday as investors were unnerved by reports of an exchange of artillery fire between North and South Korea.

The tensions on the Korean peninsula further soured investor sentiment in Hong Kong,already weakened by government efforts to curb rising property prices,fears of another rate rise in China and over the debt crisis in Europe.

The Hang Seng Index ended down 2.67 per cent at 22,896.14,its lowest close in nearly two months. The property sub-index fell 3.69 per cent as developers extended losses after Hong Kong imposed a new stamp duty on some residential deals.

The China Enterprises Index lost 2.85 per cent.