The Hang Seng Index weakened again during Thursday's trading (Oct 8), falling approximately 0.2%—or 43 points—to the 24,085 level. Investor sentiment was dampened by Wall Street's decline in the previous session and a sharp rise in US Treasury yields, which reignited concerns about interest rates remaining higher for longer.
Market pressure was also driven by oil prices holding above US$100 per barrel. This situation heightened fears of a potential resurgence in global inflation, particularly as the market digested FOMC minutes revealing that a majority of Federal Reserve officials still anticipate the possibility of further rate hikes before the year ends.
Domestically, Hong Kong's private sector activity has yet to show signs of recovery. The Hong Kong PMI fell to 49.2 in September from 49.5 in August, marking the second consecutive month below the 50-point threshold that signals contraction. These data indicate that business activity remains under pressure, further weighing on stock market sentiment.
The technology and biotechnology sectors bore the brunt of the pressure. Genscript Biotech fell 0.7%, Z.AI weakened 3.8%, MiniMax corrected by 5.9%, Shanghai Iluvatar CoreX dropped 6.1%, and InSilico Medicine Cayman declined 5.1%. Meanwhile, mainland Chinese markets finally reopened following the long National Day holiday, bringing capital flows from mainland investors back into focus for the Hong Kong market.