Hong Kong stocks fall as surging bond yields, higher oil prices weigh
- Hong Kong benchmark Hang Seng lost 2.6% by midday
Hong Kong stocks experienced a sharp decline on the first trading day of October, primarily due to soaring US Treasury yields, rising oil prices, and tightening market liquidity, affecting tech, finance, and gaming sectors.
- Rising US Treasury yields and global borrowing costs.
- Hong Kong stock market's broad sector declines.
- Macau gaming revenue and stock performance.
HONG KONG: Hong Kong stocks dropped on the first trading day of October, as the 10-year US Treasury yield hitting a more-than-two-decade high and rising oil prices dampened investor appetite for risk assets.
Hong Kong benchmark Hang Seng lost 2.6% by midday.
Hang Seng China Enterprises Index and Hang Seng Tech both fell more than 2%.
By sector, biotech and financial shares led the decline.
Global bonds came under heavy selling pressure again on Thursday, sending borrowing costs from the United States to France and Japan to multi-decade highs, putting investors on high alert for further market volatility.
Higher rates tighten market liquidity, especially in interest-rate-sensitive markets like Hong Kong.
Macau gaming stocks listed in Hong Kong declined broadly with Galaxy Entertainment dropping 6%, as the city’s gaming revenue continued to fall in September.
China’s onshore financial markets are closed from October 1 to October 7 for the National Day holidays.
Trading will resume next Thursday, October 8.
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