Solid Gold Berjangka – The Hang Seng Index plunged approximately 3.2%, or 750 points, to the 22,900 level during Thursday’s trading session (October 22), putting the Hong Kong market on track for its steepest daily decline in seven months. Selling pressure was widespread, with technology stocks serving as the primary drag on the market.
Shares of Tencent fell 3.4%, while Alibaba slid by about 6%. The weakness in these two heavyweights reflects persistent pressure on the internet and technology sector, amid investor concerns regarding valuations and a broader "risk-off" sentiment in global markets.
Sentiment was further dampened by weakness in mainland Chinese markets and rising geopolitical tensions in the Gulf region. Brent crude oil prices, which breached US$110 per barrel, have reignited concerns over global inflation and the prospect of continued tight monetary policy.
Meanwhile, China’s third-quarter economic growth—which came in stronger than expected—has actually tempered hopes that the government might soon roll out additional stimulus. This comes at a time when domestic consumption remains weak, leaving investors cautious about the outlook for China’s economic recovery.
The market is now looking ahead to Hong Kong’s September inflation data and unemployment figures for a clearer picture of the domestic economic situation. As long as pressure on tech stocks, high oil prices, and geopolitical risks persist, the Hang Seng is likely to remain volatile in the near term. (srh)