Fears that the bird flu virus had passed between humans for the first time hit airline and other tourism-related stocks in Asia on Monday, wiping two percent off the Hong Kong market.

"At the moment bird flu is an excuse for profit taking. But if there is a case of human-to-human transmission it will be more serious because it will affect the number of mainland visitors to Hong Kong," said Kenny Tang, associate director at Tung Tai Securities.

Hong Kong's Hang Seng Index was down two percent at midday. China's largest airline, China Southern Airlines Company Ltd, fell 5.7 percent while Hong Kong's leading carrier, Cathay Pacific Airways, fell 2.8 percent.

Thailand, which reported a third person had died from bird flu, suffered a 1.6 percent fall in its stock index by midday.

But South Korean stocks gained three-quarters of a percent as the bird flu boosted shares in fishery companies.

(China Daily February 3, 2004)