Hong Kong Stocks fall for fourth straight session

Headline indices of the Hong Kong share market declined for fourth straight session on Friday, 05 October 2018, on tracking negative lead from Wall Street overnight on fears over rising US interest rates and tense relations between China and the United States. At closing bell, the Hang Seng Index fell 51.30 points or 0.2% to 26,572.57. The Hang Seng China Enterprises Index dropped 17.32 points or 0.16% to 10,530.32. The sub-index of the Hang Seng tracking the Commerce & Industry sector fell 0.1%, Utilities sector dropped 0.8%, properties sector shed 0.2%, and financial sector fell 0.2%. China's financial markets are closed for the National Day holiday and will resume trade on Oct. 8. Turnover decreased to HK$76.8 billion from HK$80.22 billion on Thursday.

The S&P 500 and the Nasdaq on Thursday booked their worst sessions in about three months as a powerful climb in government bond yields rippled through Wall Street, forcing a broad reassessment of assets perceived as risky, like stocks. The yield on the 10-year U.S. Treasury note was up 3.8 basis points at 3.196% and earlier topped 3.23% to trade at its highest since 2011. This comes a day after its largest one-day rise since March 2017. Investors dumped bonds as economic indicators pointed to continued strength in the economy. A higher yield can dampen enthusiasm for stocks, as it offers higher returns for income-seeking investors, without the risk or volatility typically associated with equities.

Investors will keep a close eye on Friday's monthly U.S. payrolls report after the sell-off in bonds that's been in part triggered by data underscoring the strength of the American economy. Federal Reserve Chairman Jerome Powell also stoked the surge in yields this week when he said the central bank could eventually boost its benchmark past the neutral level.

Shares of tech companies declined on reports that data center equipment run by Amazon Web Services and Apple may have been subject to surveillance from the Chinese government. Lenovo (00992) plunged 15% to HK$5.06. ZTE (00763) dived 11% to HK$12.64. SMIC (00981) slid 4% to HK$7.93. Hua Hong Semi (01347) declined 3.3% to HK$15.8.

Handset component suppliers were also lower. AAC Technologies (02018) fell 2.2% to HK$78.3. Sunny Optical Technology (02382) dipped 2.5% to HK$81.9.

Shares of Casino companies inclined after Macau Tourism Office said visitor arrivals during the first four days of Golden Week national holidays grew 21%, with visitors from Mainland China soaring 32%. Sands China (01928) put on 1.7% to HK$36.2. But Galaxy Entertainment (00027) dipped 0.8% to HK$48.45.

OFFSHORE MARKET NEWS, US stock market closed down on Thursday, as a recent jump by U.S. treasury yields raised concerns about the outlook for interest rates. The Dow Jones Industrial Average tumbled 200.91 points or 0.8% to 26,627.48, the Nasdaq plunged 145.57 points or 1.8% to 7,879.51 and the S&P 500 slumped 23.90 points or 0.8% to 2,901.61.

The major European markets ended down on Thursday. The German DAX Index fell by 0.4%. The U.K.'s FTSE 100 Index and the French CAC 40 Index slumped by 1.2% and 1.5%, respectively.

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