Hong Kong stocks slide toward 11-month low on outlook for higher interest rates while rally in China Evergrande fizzles out
- Higher US job openings signalled a still-robust US labour market, underpinning the Fed’s hawkish pause last month and possible one more hike this year
- China Evergrande tumbled 12 per cent, surrendering part of the rally on Tuesday when the stock resumed trading
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.
