The Hang Seng Index fell 0.6%, or 145 points, to 24,134 on Wednesday, giving back part of the previous session’s rebound as renewed gains in oil prices reignited inflation and interest-rate worries. Brent crude climbed above US$101 a barrel after a storm threatened oil facilities in the US Gulf and Iran-backed Houthi forces launched attacks on targets in Saudi Arabia, stoking concerns over global energy supplies. The upswing in oil prices offset positive leads from Wall Street, even as investors continued to pare back expectations of another Federal Reserve rate hike this month.
Trading in Hong Kong remained subdued, with mainland Chinese markets and the Southbound Stock Connect still closed for the National Day holiday, curbing mainland buying support. Healthcare and technology counters, which had driven Tuesday’s rebound, came under renewed selling pressure. Notable decliners included Tencent (-0.8%), Wuxi Biologics (-3.3%), Genscript Biotech (-14.4%), Xiaomi (-1.1%), and InSilico Medicine Cayman (-8.7%).
