Hong Kong shares open lower, tracking Wall St after jobs data; Li & Fung plunges

Share prices opened lower, tracking Wall Street's losses after US jobs data revived worries that the world's largest economy may slip into a recession this year.

The Dow Jones Industrial Average fell nearly 2 pct Friday after data showed that only 18,000 jobs were added in the US in December, the worst showing since August 2003. Meanwhile, unemployment rate rose to a two-year high of 5 pct.

Sourcing firm Li & Fung, which derives a huge chunk of its revenues from the US, fell more than 5 pct on worries over reduced consumer spending in the US.

China Eastern Airlines (CEA) was up after Air China's parent China National Aviation Corp (CNAC) said it will offer not less than 5 hkd a share for CEA shares if the latter's deal to sell a 24 pct stake to Singapore Airlines (SIA) and Temasek Holdings is voted down by minority shareholders.

CNAC's counter-bid would represent at least 31.58 pct higher price than SIA-Temasek's 3.8 hkd a share offer.

The Hang Seng index opened down 557.15 points or 2.02 pct at 26,962.54.

The Hang Seng China Enterprises index was down 409.65 points or 2.58 pct at 15,493.75.

China Eastern Airlines was up 0.13 hkd or 1.88 pct at 7.04, off an early high of 7.2.

Li & Fung lost 1.6 hkd or 5.16 pct at 29.4.