Hong Kong Stocks Slide As Asian Markets Retreat

Hong Kong stocks plunged more than 1 percent in the morning session on Wednesday as political turmoil in Italy fuels concerns about stability in the European Union.

The Hang Seng Index fell 1.4 percent, to 30,054.

On the mainland, the benchmark Shanghai Composite Index fell 1.8 percent, to 3,065 while the Shenzhen Composite Index tanked 1.9 percent, to 1,752.

Tokyo ended the morning 1.8 percent down. Sydney gave up 0.5 percent, Singapore dived 1.7 percent and Seoul was 1.6 percent lower. Taipei, Manila and Jakarta were all sharply down.

The turmoil has also sent Italy's 10-year bond yields more than 300 basis points above Germany's – around a five-year high – reflecting investor concerns.

But US Treasury yields have tumbled as traders flock to assets considered safe -- yields go down the more the bonds are in demand – while the yen, a go-to unit in times of turmoil, rallied.

High-yielding, riskier, currencies from the Korean won to the Indonesian rupiah tumbled. (AFP)

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