Hong Kong Stocks Set for Steepest Drop in Seven Months
The Hang Seng Index sink to 3.2%, or 750 points, to around 22,900 on Thursday, putting Hong Kong stocks on track for their steepest daily decline in seven months as technology shares led a broad sell-off. Tencent fell 3.4%, while Alibaba plunged 6%, reflecting persistent pressure on heavyweight internet stocks. Sentiment was further dampened by weakness in mainland Chinese equities and rising geopolitical tensions in the Gulf, which pushed Brent crude above US$110 a barrel and heightened concerns over inflation and global risk appetite. Meanwhile, stronger-than-expected third-quarter growth in China reduced expectations for near-term policy support, despite continued weakness in domestic consumption. Attention now turns to Hong Kong's September inflation data and July-September unemployment figures, due later Thursday, for fresh indications of domestic economic conditions. Other notable laggards included Lenovo (-11.9%), Xiaomi (-3.9%), Wuxi Biologics (-8.7), and SMIC (-6.2%).
The Hang Seng Index sink to 3.2%, or 750 points, to around 22,900 on Thursday, putting Hong Kong stocks on track for their steepest daily decline in seven months as technology shares led a broad sell-off. Tencent fell 3.4%, while Alibaba plunged 6%, reflecting persistent pressure on heavyweight internet stocks. Sentiment was further dampened by weakness in mainland Chinese equities and rising geopolitical tensions in the Gulf, which pushed Brent crude above US$110 a barrel and heightened concerns over inflation and global risk appetite.
Meanwhile, stronger-than-expected third-quarter growth in China reduced expectations for near-term policy support, despite continued weakness in domestic consumption. Attention now turns to Hong Kong's September inflation data and July-September unemployment figures, due later Thursday, for fresh indications of domestic economic conditions. Other notable laggards included Lenovo (-11.9%), Xiaomi (-3.9%), Wuxi Biologics (-8.7), and SMIC (-6.2%).