Hang Seng Closes Lower; Oil Prices and Bond Yields Weigh on Market

The Hong Kong stock market closed lower on Friday (Sept. 11), extending a week-long trend of pressure driven by escalating tensions in the Middle East and a surge in energy prices. The Hang Seng Index fell 0.6%, or approximately 149 points, to end at 24,806.

Market sentiment remains weighed down by Brent crude prices hovering above US$109 per barrel. Disruptions to vital shipping lanes in the Middle East have heightened concerns regarding global energy supplies, while rising oil prices have amplified inflation risks and expectations of tighter monetary policy.

Pressure also stems from global bond markets. The yield on the 10-year US Treasury note is approaching 5%, raising funding costs and pressuring stock valuations ahead of the release of US Consumer Price Index (CPI) data and next week's Federal Reserve meeting.

Technology stocks were among the primary drags on the index. Z.AI Co. fell 3.2%, MiniMax plunged 7.5%, Lenovo weakened 3%, and Kingboard Laminates dropped 1.5%, while SMIC lost 0.5%. Amid the weakness in AI stocks, Chinese startup Moonshot is reportedly considering a dual listing in Hong Kong and Shanghai.

The pressure on Hong Kong stocks is also evident in their performance over the past month. JD Logistics and Kuaishou have each slumped by approximately 26%, while Meituan, Shenzhou International, and Trip.com have lost more than 18%.

Newsmaker Analysis: The Hang Seng Index continues to face pressure from a combination of an oil price shock, high global yields, and uncertainty regarding Federal Reserve policy. US CPI data stands as the next major catalyst; higher-than-expected inflation could prolong the pressure on tech stocks, whereas softer data might ease yields and pave the way for a rebound. (arl)

Source: Newsmaker.id