HK stocks slide amid thin holiday trading in region

Hong Kong's stock market experienced a dip on Monday due to reduced trading activity during the holiday season in China and South Korea, as investors adjusted their expectations for the Federal Reserve's policy tightening plans following weaker-than-anticipated US job data. The Hang Seng Index started the day lower by 8 points, or 0.04 percent, at 23,963.

The tech index fell 19 points, or 0.47 percent, to 4,138, while the China Enterprises Index decreased by 9 points, or 0.12 percent, to 8,021. US job growth in September slowed more than expected, and revised figures showed a significant drop in employment during the first nine months of the year. This news reduced the probability of another rate hike by the Fed this month from 64 percent to just 22 percent, according to the CME FedWatch tool.

The potential pause in Fed rate hikes positively impacted the Nikkei in Tokyo, which began the day with an impressive 804-point gain, reaching a peak of 1,656 points before noon. Brazilian markets were expected to rise later in the day after it became clear that Flavio Bolsonaro would face President Luiz Inacio Lula da Silva in the presidential election runoff.

Meanwhile, global bond yields experienced a temporary slowdown following the US jobs data, with 10-year US Treasury yields marginally decreasing to 5.2643 percent and two-year yields falling to 4.8143 percent. Despite the slight dip in yields, they remained near multi-year highs due to concerns over deteriorating government finances, a surplus of government bonds, and high energy costs.