Around the World's Markets: Hong Kong

THE HANG SENG index closed down 35.21 points, or 0.3 per cent, at 12,839.21 after earlier rising by 1.9 per cent on news that mainland China had reduced its interest rates.

In the wake of a larger-than-expected 1 per cent deposit rate cut by the People's Bank of China, the blue-chip index broke through 13,000, prompting profit taking among some investors who worried that the index, which has climbed 5.7 per cent since the end of May, could be gaining too much ground too quickly.