The Hang Seng Index tumbled 2.7% (667 points) to 23,943 on Friday, its steepest one-day drop since July 2026, as a renewed global selloff in risk assets pressured Hong Kong equities following the National Day holiday. The decline coincided with a sharp rise in US Treasury yields: the 10-year yield climbed to 5.34%, its highest level since 2002, amid mounting inflation and interest-rate concerns driven by elevated energy prices and robust AI-related investment.
Oil prices stayed high, with Brent crude trading around US$102.6 per barrel, supported by worries over potential supply disruptions in the Middle East and China’s suspension of refined-fuel exports. Technology counters remained under pressure due to higher yields and tighter US restrictions on advanced AI hardware, while escalating geopolitical tensions further undermined risk appetite.
Selling pressure was exacerbated by the absence of Southbound Stock Connect inflows, as mainland Chinese markets were still closed. Major underperformers included Tencent (-1.9%), AIA (-5.0%), HKEX (-2.4%), Trip.com (-3.0%) and Xiaomi (-4.4%).
