Hong Kong stocks fall as surging bond yields, higher oil prices weigh
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…
Hong Kong stocks experienced a significant drop on the first trading day of October, with the benchmark Hang Seng losing 2.6% by midday. The decline was attributed to surging US 10-year Treasury yields, which reached a more-than-two-decade high, and rising oil prices. This unfavorable market sentiment caused the Hang Seng China Enterprises Index and Hang Seng Tech to also experience declines of over 2%. Within sectors, biotech and financial shares were the worst-performing assets.
The global bond market suffered heavy selling pressure, with borrowing costs in nations such as the United States, France, and Japan soaring to multi-decade highs. This phenomenon put investors on high alert for further market volatility, as higher rates tend to tighten market liquidity, especially in interest-rate-sensitive markets like Hong Kong.
Macau gaming stocks listed in Hong Kong also took a significant hit with Galaxy Entertainment experiencing a 6% decline. This downturn in Macau gaming stocks can be linked to the city's gaming revenue, which continued to decline in September. It is worth noting that China's onshore financial markets will be closed from October 1 to October 7 for the National Day holidays, resuming trading next Thursday, October 8.
Written by urgent.news from Business Recorder's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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