Hong Kong’s stocks fall as surging bond yields, higher oil prices weigh
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’s 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 US 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 Oct 1 to Oct 7 for the National Day holidays.
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