Hong Kong’s stocks fall as surging bond yields, higher oil prices weigh
The 10-year US Treasury yield hit a more-than-two-decade high, while rising oil prices dampened investor appetite for risk assets.
On the opening day of October, Hong Kong's stock market experienced a significant drop, with the benchmark Hang Seng Index falling by 2.6% by midday. The decline came as the 10-year US Treasury yield hit a more-than-two-decade high, and oil prices continued to rise, dampening investor appetite for riskier assets. The Hang Seng China Enterprises Index and Hang Seng Tech both experienced declines of more than 2%.
Biotech and financial shares were among the sectors that led the decline, while global bonds faced heavy selling pressure, causing borrowing costs from the US to France and Japan to reach multi-decade highs. This increase in rates tightened market liquidity, particularly in interest-rate-sensitive markets like Hong Kong.
Macau gaming stocks, which are listed in Hong Kong, also suffered as the city's gaming revenue continued to decline in September. Galaxy Entertainment, for instance, saw a 6% drop. China's onshore financial markets were closed from October 1 to October 7 for the National Day holidays, with trading set to resume on October 8.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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