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The Hang Seng Index declined 0.8 per cent to 17,195.84 on Wednesday, the lowest level since November 10, while the Tech Index dropped 1.7 per cent. Financial markets in mainland China are closed this week for the “golden week” holiday.
Tencent slipped 1 per cent to HK$297.60, Alibaba Group lost 1.6 per cent to HK$81.75 and Meituan retreated 2.8 per cent to HK$106.90. Online travel operator Trip.com tumbled 3.8 per cent to HK$259, while Macau casino concessionaire Sands China lost 3 per cent to HK$22.35.
“Rising US Treasury yields and strong dollars are cranking up pressure on local stocks, and the absence of mainland buyers reduces the support for the market,” said Kenny Ng Lai-yin, a strategist at Everbright Securities. Volatility is likely to persist amid bearish view among foreign funds, he added.
US job openings surprisingly rose to 9.61 million in August, the government said on Tuesday, snapping a three-month decline and pointing to a resilient labour market. The data underpinned the Fed’s hawkish pause last month, and the majority view that one more hike may be needed this year.
China Evergrande shares soar on speculative bets that ‘worst is over’
China Evergrande shares soar on speculative bets that ‘worst is over’
Meanwhile, recent data from China suggests no major rebound in economic activity. The housing market remained weak in September, with sales at top 100 developers shrinking by an annual rate of 29 per cent, according to industry data. Manufacturing improved while the services sector weakened, official data showed.
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Chinese investors offloading overseas properties
Chinese investors offloading overseas properties
“The low probability of a meaningful economic improvement will likely disappoint market expectations and weigh on global financial assets exposed to the Chinese economy,” BCA Research said in a note on Tuesday. Investors should maintain an underweight allocation on Chinese stocks, it added.
Elsewhere, Evergrande fell 12.2 per cent to HK$0.36. The troubled Chinese developer surged 28 per cent on Tuesday when the stock resumed trading. It was halted for two days when the developer disclosed the “arrest” of its chairman and founder Hui Ka-yan following weeks of speculation.
Major Asian markets retreated. Australia’s S&P/ASX 200 lost 0.8 per cent, while the Nikkei 225 Index in Japan and South Korea’s Kospi both tumbled 2.3 per cent.
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