Hong Kong's Exchange Fund, used to protect the local currency, recorded its lowest investment gain in five quarters due to the impact of the Middle East crisis on stock market performance. The fund's first-quarter gain of HK$34.5 billion was significantly lower than the previous year, though it marked its fifth consecutive quarterly increase.

Hong Kong’s Exchange Fund, the war chest used to defend the local currency, reported its smallest investment gain in five quarters as the Middle East crisis weighed on stock market performance. The fund gained HK$34.5 billion (US$4.4 billion) in the first quarter, 56 per cent lower than HK$79.2 billion a year earlier, according to data released by the Hong Kong Monetary Authority (HKMA) on Monday. The fund still managed to report its fifth consecutive quarterly gain, but it was the smallest gain...