SHANGHAI: Hong Kong’s benchmark share index returned from a one-day holiday sharply lower on Tuesday, slumping more than 4% as worries over higher interest rates and slowing economic growth sapped investor sentiment.

The Hang Seng index fell as much as 4.11% in early trade, dragged lower by index heavyweights Alibaba Group Holding, Meituan and Tencent Holdings Ltd, which slumped between 4% and 7%.

In mainland share markets, the blue-chip CSI300 index was 1.5% lower, dragging falls into a fourth straight day on weakness in consumer and financial firms.

Hong Kong shares close with big loss

China’s yuan was steady, inching up to 6.7318 per dollar, even as the central bank set its daily midpoint fixing at its weakest since Oct. 30, 2020. The offshore yuan weakened to 6.7702 per dollar from a close of 6.76 per dollar on Monday.