Technology stocks were at the forefront of a tailspin in Hong Kong's market yesterday after corporate America dropped another bomb.
The Hang Seng Index closed down 2.94 per cent at 12,606.45 points on a light turnover of HK$7.81 billion.
'Investors don't have faith in the market,' KGI Asia director Sunny Chan said.
On Wall Street, a 2.64 per cent drop in the Nasdaq Composite Index on Monday was compounded by a shock warning from Cisco Systems.
The networking giant downgraded its earnings for the third financial quarter as Cisco chief executive John Chambers said the current operating environment 'may be the fastest any industry our size has ever decelerated'.
Hong Kong stocks fell across the board in response to the latest doom-laden news. Analysts had been expecting a more buoyant start to the week after the Hang Seng Index gained 4.86 per cent in the week leading to the long Easter weekend.