Hong Kong stocks slipped on Friday morning despite a sharp rally on Wall Street as domestic economic uncertainties prompted investors to take profits on some stocks they had recently pushed up. 
The benchmark Hang Seng index was down 1.02 percent at 10,415.56 points at 10:58 p.m. EDT. 
"The index has rebounded about 2,000 points since the September 11 attacks. It's approaching overbought, so there'll be profit-taking," said Ben Kwong, director at KGI Asia. 
China stocks, which have outperformed the broader market since the attacks on New York and Washington, were down as investors said they may have moved up too far to fast. 
Analysts said investors had been throwing their weight behind China technology stocks recently because the mainland is seen as being relatively insulated from international uncertainties. 
The Hang Seng Mainland Composite Index was down 3.21 percent at 1,127.75, but is still up 8.5 percent since the attacks. 
HSBC Holdings, Hong Kong's top bank and a global giant, led gainers with a 0.58 percent climb to HK$86.50, arcing toward an overbought level on its 14-day relative strength index. 
Analysts said investors were buying into selected heavyweights and liquid stocks in the face of global uncertainties. 
But technology stocks slipped although the tech-heavy Nasdaq Composite Index had spiked up 4.62 percent. 
Legend Holdings, the mainland's top computer maker, lost 3.36 percent at Hk$3.60 after rising as high as HK$3.85 shortly after market opened. 
Top mainland cellular carriers, China Mobile and China Unicom lost three percent to HK$25.25 and 2.6 percent to HK$9.15 respectively. China Mobile is the second largest stock on the Hang Seng by market capitalization behind HSBC. 
Investors also may have been taking profits ahead of the weekend in case of another surge in international tensions. 
The FBI warned Americans on Thursday of possible new terror attacks on U.S. soil within the next few days as U.S. forces unleashed their fiercest onslaught yet on Afghanistan. 
Investors are concerned that a protracted war would delay the economic recovery of the United States, Hong Kong's second largest trading partner. 
"The players are still concerned about the economic outlook in the U.S. and in Hong Kong. The market is now focused on the economy after the policy address," said Kenny Tang, associate director at Tung Tai Securities. 
In his annual address to the legislature on Wednesday, Hong Kong leader Tung Chee-hwa warned of tougher times ahead after last month's attacks on the United States but offered little to kickstart the local economy. 
Market turnover stood at HK$2.64 billion (US$338 million). Losers led gainers 270 to 81 with 401 stocks unchanged.