Hong Kong's Hang Seng Index opened 100 points higher, but worries over possible fund raising by Chinese banks helped drive the index sharply lower in the late afternoon.
Hong Kong's Hang Seng Index dropped below its 50-day moving average as the worsening European debt crisis hit global markets hard. Turnover sank, reflecting investors' caution.
Hong Kong followed U.S. markets lower in very thin turnover, slipping below its 10-day moving average. Hong Kong's Hang Seng Index sank 1.8 percent, and the index of Chinese companies fell 2.7 percent.
Strong performances by U.S. markets helped Hong Kong and China stocks extend their rally. However, gains and turnover declined after Monday's big rise.
The Hong Kong market surged in strong turnover after European leaders announced a comprehensive solution to the region's debt crisis. Chinese property developers jumped higher.
Hong Kong opened lower following weakness in European and U.S. markets Friday and sank almost 200 points at one time, but a rebound in Mainland stocks helped erase some losses.
China stocks rebounded after bonds issued by debt-strapped Spain and Mainland markets rose sharply. Late profit-taking trimmed some gains in continued sluggish trading.
Hong Kong opened lower, and losses accelerated in the afternoon due to weakness in Mainland and European markets. Very slow turnover reflected investor caution.