Hong Kong - Hong Kong stocks sunk 4.5 per cent lower Tuesday amid increasing pessimism sparked by news of layoffs in the financial sector.

The Hang Seng Index lost 613 points to close the day at 12,915. Turnover was 44.8 billion Hong Kong dollars (5.7 billion US dollar).

Analysts said investors were disheartened by news of job losses with the financial sector leading the fall.

Shares in the banking giant HSBC dropped 3.6 per cent following its announcement Monday that it was to axe 450 jobs among its 20,000-strong Hong Kong workforce blaming the deteriorating global economy and a pessimistic outlook for 2009.

Hong Kong has been hard hit by the recent global economic slump with sharp falls in property prices and a 30 per cent fall in the blue-chip Hang Seng Index since September.

Last week, the government released data which showed the territory had fallen into recession after recording a second consecutive quarter of contracting economic growth between July and September. (dpa)