Around the World's Markets: Hong Kong

STOCKS CLOSED 1.45 per cent lower as brokers grew nervous ahead of yesterday's decision on rates by the US Federal Reserve.

The Hang Seng fell more than 250 points before ending the day at 10,148.69, a fall of 149.40 points. Market sentiment was affected by the IMF's negative comments on the economy on Monday.

Selling was also encouraged by Moody's downgrading of Japan's sovereign debt. But brokers said they were still hoping the Hong Kong Association of Banks would cut rates later this week.