Hong Kong stocks plunged 1.5 per cent yesterday amid increasing bearishness over US equities and near panic selling in Tokyo. The Hang Seng Index fell 165.45 points to close at 10,699.86. The broader All Ordinaries Index lost 73.92 points to 5,172.97. Losses came across the board, with all 33 Hang Seng Index constituents ending lower or unchanged. The market fell from the opening in reaction to three consecutive trading-day losses in New York. Bargain-hunters supported the index around 10,800 points, before near panic selling in Tokyo sparked a sharp round of selling in the late session. Howard Gorges, director at South China Securities, said: 'Locals panicked a little after lunch - Tokyo was the trigger.' The market was also worried by a report released overnight by US strategist Elaine Garzarelli that US stocks could fall 15 to 25 per cent from their peak in May and June. Blue-chip property shares saw some of the sharpest losses. Cheung Kong Holdings nosedived 2.76 per cent. Henderson Land dropped 1.79 per cent. Property stocks fell despite statements by US Federal Reserve chairman Alan Greenspan indicating that interest rates would remain unchanged in the near term. Franklin Lam, director of research at H G Asia, pointed out that property shares had outperformed the market for over a year and were vulnerable to profit-taking. 'When the herd starts running for the door, they will sell the sector with the most entrenched gains,' Mr Lam said. Cathay Pacific Airways dropped 4.4 per cent amid expectations that first-half results would fail expectations. The situation was equally gloomy outside the index. Drinks group Vitasoy International was one of the few bright spots in the market yesterday, gaining 7.5 per cent after the release of annual results on Tuesday. While profits were down 75 per cent on the previous year, the market activity indicated Vitasoy was ready to recover from a poor performance related to a scare over sour soy milk that cost the firm nearly $80 million earlier in the year. A slim profit announced by Joyce Boutique Holdings could not save its share price, which fell 9.5 per cent. Apparel firm YGM Trading fell 6.7 per cent despite posting a profit growth of 44 per cent last year. Mr Gorges at South China Securities recommended investors remain sidelined until the outlook became clearer. 'The market is trading sideways in a range that could be broken in either direction,' he said.