Hong Kong shares plummet 4.29pc by close

HONG KONG: Hong Kong stocks slumped 4.29 percent on Friday as world markets suffered a huge sell-off over concerns that the global economy is on the verge of another recession.

The benchmark Hang Seng Index fell 938.60 points to 20,946.14 on turnover of HK$124.77 billion ($16.00 billion).

Markets tumbled across Asia -- with Tokyo, Sydney, Seoul and Singapore all hammered -- as already-fragile confidence was hit by more weak US economic data and a warning that the eurozone debt crisis had likely spread.

They also followed big falls in the United States, where the Dow suffered its worst one-day drop since December 2008 to close 4.31 percent lower.

"The current sell-off in the local and regional stock markets is like a repeat of the meltdown post-Lehman Brothers' collapse in 2008," said Tanrich Securities investment manager Jackson Wong.

All 46 blue-chip companies on the benchmark index ended in the red.

Companies with large overseas portfolios and export-related businesses were the biggest losers.

Hutchison Whampoa dropped 8.3 percent to HK$82.90, Cosco Pacific plunged 8.1 percent to HK$10.22 and CNOOC dived 5.9 percent to HK$15.54.

Macau casino plays were also badly hit. Wynn Macau lost 7.5 percent to HK$24.75 and Sands China dropped 7.3 percent to HK$22.15.

Chinese shares closed down 2.15 percent. The Shanghai Composite Index shed 57.62 points to 2,626.42 on turnover of 87.8 billion yuan ($13.6 billion).

The index is down nearly three percent for the week.

"The A-shares were affected by the sharp drop in US stocks last night and by the external global economic situation. This might be an overhang for the market here for the next one or two weeks," Zhou Xu, an analyst from Nanjing Securities, told Dow Jones Newswires.

Analysts said losses in the domestic market were limited compared with regional markets because of the already-low valuations.

Banks led the losses Friday.

China Minsheng Banking Corporation lost 1.9 percent to 5.27 yuan and Industrial and Commercial Bank of China dropped 1.2 percent to 4.11 yuan.

Airlines had mixed performance.

China Eastern Airlines finished 2.9 percent higher at 5.39 yuan. Air China fell 1.4 percent to 9.38 yuan.

Copyright AFP (Agence France-Presse), 2011