Hong Kong shares fell 0.54 per cent on Friday, a second straight loss, following a weak lead from Wall Street and concerns over the euro zone.
The benchmark Hang Seng Index shed 124.23 points to 22,782.44 on turnover of HK$65.47 billion (US$8.45 billion).
Sentiment remained subdued after minutes from the US Federal Reserve’s latest policy meeting stoked fears it could end its huge monetary easing sooner than expected.
There is also nervousness about Sunday’s Italian election, which is too close to call and which markets have warned could send the economy back into crisis if there is no clear winner.
On Wall Street the Dow was down 0.34 per cent, the S&P 500 eased 0.63 per cent and the Nasdaq dropped 1.04 per cent after worse-than-expected US business activity data, while new claims for unemployment benefits rose last week.
Traders are also increasingly nervous about the lack of progress in Washington on a deal to avert the sequester, deep government spending cuts economists say will slow US growth.
“The Hang Seng Index remains in correction mode, reflecting the weaker US and regional stocks. The downward trend may last for another week,” KGI Asia chief operating officer Ben Kwong said.