The Hang Seng Index lost 2.1 per cent to 16,950.59 at the noon trading break, wiping out all the gains made earlier this week. The Tech Index declined 2.3 per cent, while the Shanghai Composite Index weakened 0.5 per cent.
All but 12 out of the 82 members of the index dropped. HSBC slid 3.4 per cent to HK$65.90 and insurer AIA lost 2.2 per cent to HK$51.75, leading declines among the financial sector. Tencent weakened 0.6 per cent to HK$359.80, Alibaba lost 2.3 per cent to HK$75.75 and Trip.com tumbled 4 per cent to HK$314.80.
Overnight data showed the US economy cooled, with weekly unemployment claims approaching a one-year high, while manufacturing PMI declined more than expected.
Major Asian stock markets stumbled across the board as risk appetite soured, with Japan’s Nikkei 255 Index leading the retreat with a 4.6 per cent loss. South Korea’s Kospi lost 3.2 per cent and Australia’s S&P/ASX 200 dropped 2.1 per cent.
“The market is now shifting its focus to signs of recession now that the Fed has turned more dovish on rate cut possibilities,” analysts at Ping An Securities said in a note on Friday. “The risk-averse sentiment is likely to persist in the short term due to economic and geopolitical uncertainty.”
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