The Hong Kong stock market has experienced back-to-back losses, shedding over 350 points or 1.9% over the last two sessions. The Hang Seng Index currently hovers above the 18,475 mark and is anticipated to open lower once again on Thursday.
The global outlook for Asian markets is negative, fueled by concerns over rising treasury yields and the potential trajectory of interest rates. European and U.S. markets have posted declines, setting a grim tone for Asian equities.
Wednesday saw a broad-based selloff on the Hang Seng, with financials, property, and technology stocks suffering significant losses. The index dropped 344.15 points or 1.83%, closing at 18,477.01 after fluctuating between 18,425.09 and 18,694.55 throughout the session.
Notable movements included Alibaba Group falling 3.46%, while Alibaba Health Information surged 5.03%. ANTA Sports declined 2.00%, China Life Insurance decreased by 2.38%, and China Mengniu Dairy dipped 1.42%. China Resources Land slid 1.48%, CITIC retreated 3.34%, and CNOOC rose 1.70%. Country Garden plummeted 4.42%, CSPC Pharmaceutical dropped 3.98%, and Galaxy Entertainment slipped 1.15%. Hang Lung Properties gained 1.36%, whereas Henderson Land decreased by 1.78%. Hong Kong & China Gas fell 0.96%, Industrial and Commercial Bank of China sank 1.94%, and JD.com declined 3.21%. Lenovo lost 1.69%, Li Ning tumbled 4.33%, Meituan suffered a sharp drop of 5.29%, New World Development fell 1.56%, Techtronic Industries slid 2.97%, Xiaomi Corporation dropped 1.98%, and WuXi Biologics slumped 2.73%.
Wall Street provided a lackluster lead as major indices opened sharply lower on Wednesday and remained in negative territory throughout the trading session. The Dow Jones Industrial Average plunged 411.32 points or 1.06%, ending at 38,441.54. The NASDAQ Composite slumped 99.30 points or 0.58%, closing at 16,920.58, while the S&P 500 fell 39.09 points or 0.74% to finish at 5,266.95.
The ongoing rise in treasury yields has exacerbated concerns about future interest rate hikes, particularly ahead of imminent key inflation data. The yield on the benchmark 10-year note has reached its highest level in nearly a month.
Additionally, crude oil prices weakened on Wednesday amid worries about the impact of high borrowing costs on energy demand. West Texas Intermediate crude oil futures for July delivery fell $0.60, settling at $79.23 per barrel.
