ASIA MARKETS: Hong Kong Stocks Continue Losing Streak After Weak Chinese Data

By Laura He, MarketWatch

HONG KONG (MarketWatch) -- Hong Kong stocks fell on Monday for a seventh session of losses, after the release of key indicators suggested China is seeing a slower-than-expected economic recovery.

Official Chinese data released Saturday showed the country's industrial production increased 6.9% year-on-year in August. That compares with a 9% gain in the previous month and missed forecasts for a 8.7% rise in a poll from The Wall Street Journal. Growth in retail sales and fixed-asset investment also came in below expectations.

The Hang Seng Index declined 1%, with oil stocks suffering heavily.

China Petroleum & Chemical Corp., or Sinopec, dropped 8.1% on its ex-dividend day. The loss came after the refining giant announced that its retail unit will sell 107 billion yuan ($17.3 billion) worth of shares, or a 30% stake. The stake will go to 25 domestic and foreign investors, including blue chips such as China Life Insurance Co. and Tencent Holdings Ltd. . China Life lost 2%, while online major Tencent rose 0.4%.

Oil producers Cnooc Ltd. and PetroChina Co. dropped 1.4% and 1% respectively, amid a fall in crude-oil futures (CLV4).

Stock in Fosun International Ltd. , which also bought into the Sinopec offering, was down 0.2%. The company said Friday it and its consortium partners had made a counter-bid for Club Méditerranée SA , amid a bidding war with Italian magnate Andrea Bonomi.

Over on the mainland, the Shanghai Composite Index edged up 0.3%.

In other Asian markets, Sydney's S&P/ASX 200 closed 1% lower, with the Australian dollar (AUDUSD) falling to 90.06 U.S. cents from 90.40 U.S. cents in the prior session. Seoul's Kospi Composite Index ended down 0.3%.

Japanese markets were closed for a national holiday and scheduled to resume trading on Tuesday.

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