HSI Ends Sharply Lower As Tech Dumping Returns

Local and regional shares plummeted on Thursday, taking their cue from Wall Street where forecast-beating US inflation data stoked jitters that the Federal Reserve will hike interest rates sooner than expected.

The Hang Seng Index started more than 300 points lower and widened its losses towards the end of the day. It closed at its lowest point, at 27,718, down 512 points, or 1.8 percent.

Market turnover was HK$163.6 billion.

Tech stocks were heavily sold. The Hang Seng Tech Index dived 3.3 percent.

Tencent and Alibaba each plunged more than three percent, while Xiaomi tumbled 2.9 percent and Meituan slid 1.4 percent.

But the worst blue-chip performer was power equipment maker Techtronic Industries, which sank 9.5 percent.

Mengniu Dairy bucked the trend, and was the benchmark’s best performer, by jumping up 2.9 percent.

Across the border, the Shanghai Composite Index and the blue-chip CSI300 each slipped one percent, while the Shenzhen Composite shed 0.8 percent.

Around the region, the Nikkei in Japan fell 2.5 percent, with index heavyweight Softbank diving 7.8 percent. The conglomerate's decision to not extend its buyback programme overshadowed news that its annual net profit was the best ever for a Japanese company.

In Seoul, the Kospi shed 1.3 percent, Taiwan gave up 1.5 percent, Australia edged down 0.9 percent and Singapore was 0.7 percent lower.