HK shares end down 1.9%, worst performance in a month

Hong Kong shares tumbled on Wednesday for a second straight session as turnover spiked after more weak data from the United States on Tuesday compounded global growth concerns.
The Hang Seng Index slumped 1.91% to 21,992.72, while the China Enterprises Index of top Hong Kong-listed Chinese companies dropped 2.21% to 12,007.1.
On the mainland, the Shanghai Composite Index pulled back from a six-week low to finish almost flat, edging down 0.03% to 2,678.48 points. A-share turnover declined from Tuesday and was almost 30% below its 20-day average.
Wednesday's retreat was the index's worst daily performance in a month. The next level traders are looking at for the Hang Seng is around 21,500. The level corresponds with this year's low in June and also the 23.6% retracement of the index's entire move up from the financial crisis low in 2008 to the peak in November last year.
Export-related names were hit hardest by increasing fears that Washington's efforts to cut spending will slow growth at a time when global factory output is already stagnating. Li & Fung Ltd toppled 5% to a two-year low and into technically oversold territory, adding to its more than 45% loss so far in 2011. Due to announce its interim results on Aug. 11, Macquarie and Citi revised down their full-year earnings estimates for Li & Fung last week. Li & Fung manages supply chains for retailers including Wal-Mart Stores and Target. The United States remains Li & Fung's key export market, representing 65% of total turnover in 2010, compared with 64% in 2009. Europe accounted for 25% of turnover in 2010, against 27% in 2009.