Hong Kong stocks fall as surging bond yields, higher oil prices weigh

Business Recorder reported that Hong Kong shares slipped in the first session of the month, with the benchmark Hang Seng down 2.6% by midday. The Hang Seng China Enterprises Index and Hang Seng Tech each fell more than 2%. Biotech and financial stocks led the losses.

Investor appetite for risk assets was weighed down by a 10-year US Treasury yield at its highest level in over two decades, along with firmer oil prices. Heavy selling across global bonds pushed borrowing costs in the United States, France and Japan to multi-decade highs, leaving investors on guard for more volatility. Tighter liquidity from higher rates tends to hit rate-sensitive markets such as Hong Kong harder.

Macau gaming stocks in Hong Kong also declined broadly, with Galaxy Entertainment falling 6% after gaming revenue in the city fell again in September. Mainland China's onshore markets are closed from October 1 to October 7 for National Day holidays, and trading is set to resume on Thursday, October 8.