Hong Kong Stocks Slump Amid AI Weakness and Murky US Economic Signals
Hong Kong stocks declined on Friday, tracking an overnight sell-off on Wall Street, as fresh anxiety over the AI sector and softer U.S. labor data triggered risk aversion.
The Hang Seng Index lost 615.55 points, or 2.4%, to close at 25,220.02, while the Hang Seng China Enterprises Index fell 223.56 points, or 2.5%, to 8,919.78.
Overnight, U.S. equities fell as worries about stretched technology valuations resurfaced despite Nvidia's upbeat outlook, sending the Nasdaq to its sharpest one-day swing since April 9, when concerns over Trump-era tariffs jolted markets, according to Reuters.
The U.S. payrolls for September came in stronger than expected, but a higher jobless rate and downward revisions to prior months offered a mixed read on the labor market as the Federal Reserve considers its next policy step.
Separately, Fed officials sounded cautious on inflation and pointed to brewing risks in financial markets, including the possibility of a steep asset-price correction, as they discussed whether further rate cuts are warranted.
In corporate news, Miniso (HKG:9896) closed nearly 3% lower after reporting a drop in third-quarter attributable profit despite a 28% surge in revenue.
Meanwhile, Kelfred (HKG:1134) advanced 15% after saying that its controlling shareholder, Conquer Holding, is in talks with a potential buyer over a possible sale of its 54.19% stake.
Source: MTNewswires
