Hang Seng index tumbles on Spanish, Cyprus downgrade

Hong Kong's stocks tumbled on Thursday after Moody's and Egan-Jones cut Spanish rating. Moreover Moody's agency reduced also Cyprus rating as country signalled it may need bailout. Hang Seng index fell 1.15% or 218.12 points and finished at 18,808.40. Esprit Holdings was the major decliner for a second consecutive day after its CEO resignation. Today Esprit stocks plunged 10.4% after a 22% fall yesterday. Logistics firm Li & Fung slipped 2.5%. On the upside Swire Pacific gained 1.9%.