Hong Kong Stocks Edge Lower

The Hang Seng Index edged down 0.2%, or 43 points, to 24,085 on Thursday, as a pullback on Wall Street and renewed concerns over inflation and interest rates weighed on sentiment. An overnight Wall Street selloff, coupled with a sharp rise in US Treasury yields, heightened concerns over higher-for-longer interest rates, while Brent crude remained above US$100 a barrel, adding to inflationary pressures. Locally, Hong Kong's private-sector activity remained in contraction, with the September PMI falling to 49.2 from 49.5 in August, marking a second straight month below the 50 threshold. Technology and biotech shares faced renewed selling pressure, while mainland markets reopened after the week-long National Day holiday. Genscript Biotech (-0.7%), Z.AI Co. (-3.8%), MiniMax (-5.9%), Shanghai Iluvatar CoreX (-6.1%), and InSilico Medicine Cayman (-5.1%) were among the notable decliners.

The Hang Seng Index declined 0.6%, or 145 points, to close at 24,131 on Wednesday, reversing part of previous session's rebound, as renewed gains in oil prices revived inflation and interest-rate concerns. Brent crude rose above US$101 a barrel after a storm threatened US Gulf oil facilities and Iran-backed Houthis launched attacks on targets in Saudi Arabia, raising concerns over global energy supplies. The rise in oil prices offset positive cues from Wall Street, while markets continued to scale back expectations for another Federal Reserve rate hike this month. Hong Kong trading also remained subdued as mainland Chinese markets and Southbound Stock Connect stayed closed for the National Day holiday, limiting mainland buying support. Healthcare and technology stocks, which led Tuesday’s rebound, came under renewed selling pressure,  with Tencent (-1.8%), Wuxi Biologics (-2.1%), Genscript Biotech (-12.7%), Xiaomi (-1.3%), and Z.AI Co. (-2.7%) among the notable decliners.

The Hang Seng Index climbed 1.0%, or 240 points, to close at 24,281 on Tuesday, extending gains as a technology-led rally in global markets boosted sentiment. Wall Street closed higher overnight on AI optimism and buyout activity, even as Treasury yields hovered near 5.31%. Lower oil prices also supported risk appetite, with Brent crude hovering around US$100 a barrel after falling 1.9% in the previous session as Middle East exports increased and G7 nations pledged to boost supplies. Trading remained relatively thin as mainland Chinese markets stayed closed for the National Day holiday. AI-related shares remained in focus, with biotech also rising. HSBC also drew attention after the HKMA questioned its decision to establish a global AI hub in Singapore rather than Hong Kong. Notable movers included Z.AI Co. (7.6%), Tencent (1.2%), Genscript Biotech (7.7%), Xiaomi (1.6%), and Wuxi Biologics (4.5%).