HONG KONG: Hong Kong stocks sank more than three percent Friday afternoon as tech firms followed their US counterparts sharply lower after weak earnings from big-name firms including Amazon and Facebook parent Meta.

The Hang Seng Index tumbled 3.66 percent, or 564.88 points, to 14,863.06.

The Shanghai Composite Index sank 2.25 percent, or 66.98 points, to 2,915.93, while the Shenzhen Composite Index on China’s second exchange shed 3.40 percent, or 66.18 points, to 1,879.20.

The hefty losses wiped out the cautious recovery seen since the market suffered a more than six percent rout on Monday in reaction to President Xi Jinping’s tightened grip on power in China and placement of loyalists in key positions.

Alibaba, Tencent, Meituan and JD.com were among the worst-hit companies, extending losses suffered throughout the year.

Hong Kong stocks finish on positive note

On Wall Street, the Nasdaq lost more than one percent after forecast-missing earnings this week from some of the world’s biggest firms including Apple, Amazon, Meta and Google parent Alphabet.

The results suggested the impact of rising interest rates, surging inflation and an economic slowdown were taking their toll on companies’ bottom lines.