Hong Kong Stocks Wobble as Tech Giants Falter Amid US-China Tensions
Hong Kong stocks witnessed a downturn led by plummeting tech shares ahead of the reopening of Chinese markets post-holiday. The Hang Seng Index declined amidst risk-off sentiment, influenced by U.S. legislative pressures on China's chip sector. Despite tensions, analysts remain optimistic about China equities' future performance.
On Wednesday, Hong Kong stocks faced significant decreases, primarily influenced by the technology sector, as markets prepared for the reopening of Chinese exchanges after an extended National Day holiday.
The Hang Seng Index fell by 1.1%, continuing a three-day downward trajectory following its recent peak on October 2. Risk-off sentiment was prevalent across Asian markets, resulting in a 0.7% decrease alongside overnight declines in the U.S. Meanwhile, spot gold prices soared to a record $4,000 per ounce, reflecting investor caution.
In particular, the tech sector weighed on Hong Kong markets, with the Hang Seng Tech Index down 1.1% and AI stocks dropping 1.3%. Notably, companies like Alibaba and Baidu saw losses, aggravated by U.S. lawmakers advocating for tougher restrictions on China's chip industry. While mainland developers experienced declines, Alpine Macro analysts remain optimistic about China's equities outperforming due to various economic and geopolitical factors.
(With inputs from agencies.)
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