HONG KONG (XFN-ASIA) - Share prices extended their losses in afternoon trade, with the benchmark index down over 1,200 points and slipping into red for 2007 as it wiped all year-to-date gains.
Investors were rushing to unload positions as panic gripped the market following a 5.4 pct drop on the Japanese bourse and continued falls in other regional markets amid worries that the US sub-prime mortgage sector problems will boil over to the wider economy.
Unwinding of yen carry trades also contributed to the tumble, as the Japanese currency spiked against the US dollar.
At 2.38 pm, the Hang Seng Index was down 1,201.32 points or 5.81 pct at 19,471.07, off a low of 19,431.54 and high of 20,761.31.
The index had closed at 19,964.72 on Dec 29, the last trading day of 2006.
jun.concepcion@xfn.com
jc/rc xfnjcc/xfnrc COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.