Hong Kong stocks sink to lowest since 2011 as rate increases dent market confidence, heighten recession worries

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Hong Kong stocks slumped to the lowest level in almost 11 years on concerns more interest-rate increases by global central banks will crush consumption, damage corporate earnings and push the global economy into a recession.

The Hang Seng Index sank 2 per cent to 18,089.77 at 3.18pm local time, a level not seen since December 2011, following a 0.6 to 1.6 per cent drop in equity markets across Asia-Pacific. The Tech Index lost 2.4 per cent while the Shanghai Composite Index declined 0.3 per cent.