HK shares fall 1 pct in thin trade, Foxconn slides

(Updates to close)

HONG KONG, June 24 (Reuters) - Hong Kong shares fell for the fourth straight trading day on Tuesday amid thin volume, with handset maker Foxconn (2038.HK) hitting a 2-½ year low on worries over market share losses.

Falls in property stocks such as Hang Lung Properties (0101.HK) and China Overseas (0688.HK) ahead of a U.S. interest rate meeting also weighed on the market.

"The market continues to move lower on a lack of major positive news and the outcome and statement from a FOMC meeting will dictate the short-term trend of the market," said Alex Tang, research director, Core Pacific-Yamaichi International (HK) Ltd.

The U.S. Federal Reserves is expected to hold interest rates steady, but investors will scrutinise its statement for any hints on the outlook for monetary policy.

Foxconn, the world's top contract maker of cellphones fell 5.4 percent to HK$8.88, tracking a 6 percent drop in Motorola shares overnight. Motorola, one of Foxconn's major customers, has been beset by declining sales in its home market of North America. [ID:nHKG224671]

The Hang Seng Index .HSI closed down 1.14 percent, or 258.94 points, at its session low of 22,456.02, led by a slide in Hong Kong Exchanges and Clearning (0388.HK). The main index moved within a 275 point range after opening 0.08 percent lower.

"There may be some window dressing activities this week ahead of the half-year end," said Conita Hung, a director at Delta Asia Financial Group.

"But any good news from mainland China or overseas would likely be seen as sell opportunities," she said.