05.10.202602:01:52UTC+00Hong Kong Stocks Still Under Pressure

The Hang Seng Index slipped 0.3%, or 66 points, to 23,908 on Monday, extending its downturn after a 2.6% plunge in the previous session, as elevated US Treasury yields and persistent worries over higher oil prices continued to weigh on sentiment.

The weakness in Hong Kong came despite gains across most other Asian markets, which were supported by weaker-than-expected US employment data that tempered expectations of another Federal Reserve rate hike this month and helped pull Treasury yields back from recent highs. Brent crude, however, remained elevated at around US$102 a barrel, keeping inflation concerns front and center amid ongoing tensions in the Middle East.

Trading activity was muted, with mainland Chinese markets closed for the National Day holiday. Among major constituents, Tencent (-0.8%), AIA (-1.5%), Meituan (-1.1%) and Xiaomi (-1.4%) declined, while Kingboard Laminates (+5.1%) and Lenovo (+3.6%) advanced.

On the domestic front, stronger-than-expected Hong Kong retail sales offered a brighter signal, rising 2.9% year-on-year in August—the fastest pace in three months—suggesting an improvement in consumer demand.