Around the World's Markets: HONG KONG

HONG KONG stocks closed lower amid dwindling liquidity as institutions squared their books for 1999, pushing the main index down almost 2 per cent.

The Hang Seng index closed down 253.95 points or 1.60 per cent at 15,571.36.

"It's ugly," said one analyst. "The volume's [turnover] about halved from the average we saw last week and the beginning of this week."

A salesman at a US bank added: "Liquidity's drying up."