Market Wrap: China-Japan conflicts drags down HK market; Dongfeng plunges

Hong Kong stocks fell, led by Japan-related stocks, on concerns that a tensions between China and Japan over disputed islands are could hurt the world’s second and third biggest economies.

“There may not be a real war, but trade war may be inevitable,” said Liao Qun, senior vice president for strategy & planning, China banking, Citic Bank. “Supply chains in many high-tech and auto industries would be cut off, which could affect production in those companies.”

via Business feed http://www.scmp.com/business/money/stock-talk/article/1039866/market-wrap-china-japan-conflicts-drags-down-hk-market