Global Market: Hong Kong stocks fall as oil rises, tech and biotech shares drag

Hong Kong stocks fell on Wednesday, tracking weakness across Asian markets as rising oil prices weighed on sentiment and investors sold major internet and biotechnology companies, according to a report by Reuters.

The benchmark Hang Seng Index slipped 0.5% by the lunch break, while the Hang Seng China Enterprises Index declined 0.7%. The Hang Seng Tech Index was down 0.9%.

Hong Kong-listed Chinese technology companies came under pressure, with artificial intelligence developer Minimax falling 5% and Alibaba declining 3%.


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Biotechnology stocks also weakened, dropping 2.7% after a strong gain in the previous session. Declines in technology and biotech shares contributed to broader market weakness.

Market sentiment was also hurt by signs of slowing economic activity. Hong Kong's S&P Purchasing Managers' Index fell 0.3 point to 49.2 in September, remaining below the 50 mark that separates expansion from contraction for a second consecutive month.

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According to Reuters, weak consumer demand and mixed industrial data have offset some of the optimism generated by policy support in China, leaving investors cautious despite selective interest in technology stocks.

China's onshore financial markets remain closed from October 1 through October 7 for the National Day holidays. Trading is scheduled to resume on October 8.

Higher oil prices added to inflation and economic-growth concerns, while weakness in major technology and biotechnology shares kept pressure on Hong Kong equities.


(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)