By Laura He, MarketWatch

HONG KONG (MarketWatch) -- Hong Kong stocks sold off on Monday, falling to their lowest close in more than two months, as massive protests led to the shutdown of some businesses and bank branches in the territory.

The Hang Seng Index slid 1.9% to close at 23,229.21, the worst level since early July.

The protests by the pro-democracy activists opposing Beijing's election plan for Hong Kong have expanded to larger parts of Hong Kong on Monday, with some roads blocked and banks and retailers in the affected areas shutting their doors.

In Hong Kong markets, local banks, retailers, and property developers were hard hit.

Index heavyweight and Sino-British banking giant HSBC Holdings PLC fell 1.8%, while British bank Standard Chartered PLC declined 2.5%.

Among other losers in the banking sector, BOC Hong Kong (Holdings) Ltd. skidded 3.7%, Chong Hing Bank Ltd. tumbled 3.5%, Dah Sing Banking Group Ltd. fell 2.9%, and Bank of East Asia Ltd. lost 2.8%.

Shares of Hong Kong developer New World Development Co. Ltd. fell 4.6%, while rivals Sun Hung Kai Properties Ltd. and Cheung Kong (Holdings) Ltd. both gave up 3.7%.

Local retailers were poorly bid. Jewelry brands Luk Fook Holdings (International) Ltd. and Chow Tai Fook Jewellry Group Ltd. dropped 4.8% and 3.8% respectively, while cosmetic stores Bonjour Holdings Ltd. and Sa Sa International Holdings Ltd. pulled back 3.5% and 3.1%, respectively.

In other Asian markets, Australia's S&P/ASX 200 ended down 0.9%, and South Korea's Kospi Composite Index settled 0.3% lower.

However, Japan's Nikkei Average advanced 0.5%, with the yen weakening against the dollar to Yen109.593 from Yen109.295 in the previous session. The broader Topix index rose 0.4%.

   On the Chinese mainland, the Shanghai Composite Index   finished 0.4% higher. 
 

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