Hong Kong stocks close down more than 3%

HONG KONG: Hong Kong stocks closed sharply lower Thursday as Asian markets tracked a plunge on Wall Street that came after US Federal Reserve boss Jerome Powell indicated interest rates would go higher than expected to fight inflation.

The Hang Seng Index sank 3.08 percent, or 487.68 points, to 15,339.49.

The losses ate into the previous two days’ big gains, which came on the back of speculation China was planning to roll back some of its painful zero-Covid policies.

Adding to the selling was confirmation from Beijing’s health authority that it intended to stick to the strategy.

China and HK stocks extend gains

The Shanghai Composite Index lost 0.19 percent, or 5.56 points, to 2,997.81, while the Shenzhen Composite Index on China’s second exchange was marginally down, inching 0.82 points down to 1,967.38.