Hong Kong shares slide to four-month low
Hong Kong stock slumped four-month lows on Thursday, while mainland blue chips edged closer to a technical bear market, as a selloff in tech shares and fading expectations for fresh stimulus to shore up China’s economy dented investor sentiment.
In Hong Kong, the benchmark Hang Seng index tumbled 2.9 percent, while the city’s tech shares dived 4.6 percent.
In the mainland market, the blue-chip CSI300 index lost 1.3 percent at the midday break, leaving it nearly 20 percent below its June peak.
The benchmark Shanghai composite index dropped 0.9 percent.
The 20 percent threshold from a recent peak is widely defined as marking a technical bear market.
Market sentiment has been hurt by disappointment over Beijing’s piecemeal stimulus measures, traders and analysts said, while stronger-than-expected third-quarter economic growth has further reduced expectations for additional policy support.
“China’s limited stimulus measures announced ahead of the National Day holiday, including mortgage interest subsidies for first-time buyers of lower-priced properties, disappointed market expectations,” said Kelly Chung, chief investment officer for multi assets at Value Partners.
Asian shares dip
Asian stocks struggled to stay above water in early trade on Thursday, as tech earnings optimism provided only fleeting support amid lingering concerns over AI uncertainty in the Gulf.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.2 percent, on track for a fourth straight week of decline.
Japan’s Nikkei stock index gave up earlier gains to trade 0.4 percent lower, while Korean shares were down more than 1 percent.
US stock futures, the S&P 500 e-minis, were down 0.4 percent at 7,765.8. Overnight, the tech-heavy Nasdaq led Wall Street to a higher close as better-than-expected earnings reports from market heavyweights helped ease some concerns over the sustainability and profitability of massive AI build-outs.
Indonesian stocks trim losses
Indonesian equities trimmed early losses to trade flat on Wednesday after the central bank held its benchmark interest rate steady but reduced the reserve requirement ratio in an effort to boost lending.
The Jakarta Composite Index was trading near its last close of 5,278.888 points, compared to a 0.8 percent decline ahead of the decision.
Bank Indonesia kept its main interest rate unchanged for a fourth straight policy review but announced a gradual cut in the reserve requirement ratio to 7 percent from 9 percent and hiked its overnight deposit rate by 25 basis points to 5 percent.
The rupiah slipped back below the key 18,000 level to hold on to its title as the worst-performing Asian currency, down 7.4 percent this year.
Analysts were nearly evenly split before the decision about whether the central bank would hold or raise rates, in a Reuters poll run from October 13 to 19.
Japan’s Nikkei slips
Japan’s Nikkei share average declined on Thursday as chip-sector shares gave back the previous session’s gains, with investors cautious about the outlook for AI-related spending next year.
Despite posting overall solid results after Wednesday’s Wall Street close, US chip equipment maker Lam Research shares slipped in extended trading, with Iwai Cosmo Securities analyst Kazuyoshi Saito pointing to worries about demand from China.
“In China, there was a rush to procure manufacturing equipment ahead of schedule amid concerns over tighter regulations, and the market seems not to have fully priced in the subsequent payback,” he said.
South Korean stocks fall
South Korean shares fell more than 1 percent on Thursday on profit-taking pressure in the chip sector, while investors’ focus was on the Bank of Korea’s policy meeting for clues on the growth and policy outlook.
The benchmark KOSPI was down 66.34 points, or 1.16 percent, at 5,669.32 as of 0126 GMT. On Wednesday, the index rose 3.3 percent, marking the biggest daily gain in six weeks on a rebound in chipmakers.
“The market is seen in volatile trading on profit-taking pressure after the previous session’s sharp gains,” said Han Ji-young, an analyst at Kiwoom Securities.
The Bank of Korea left its benchmark interest rate unchanged, pausing after back-to-back quarter-point hikes in July and August, although strong chip-driven growth and above-target inflation keep the option of further tightening open.
Australian stocks head for worst day in two weeks
Australian shares fell on Thursday and were on track for their worst session in two weeks, dragged down by banks and miners, while Santos slid after lowering the top end of its annual production forecast due to delays at its Alaska project.
The S&P/ASX 200 index fell 0.7 percent to 8,775.30 by 0053 GMT, heading for its biggest daily drop since October 8.
Santos dropped as much as 1.8 percent in its steepest intraday fall in three weeks, after the country’s second-largest independent oil and gas producer narrowed its 2026 production and sales volume outlook.
The energy sub-index declined 2 percent, posting its steepest intraday fall since October 1.
Sector major Woodside Energy declined nearly 4 percent.
Indian stocks seen opening lower
Indian shares are expected to open lower on Thursday, extending losses from the previous two sessions, as the escalating Middle East war keeps oil above $110 per barrel, stoking inflation concerns.
GIFT Nifty futures were 22,643 at 7:55 a.m. IST (0225 GMT), indicating a negative start for the benchmark Nifty 50 which closed at 22,811.35 on Wednesday.
Brent crude futures were up 1.3 percent at $110.3 per barrel as more attacks in Saudi Arabia by Yemen’s Houthis prompted the United States to order some diplomats and family members to leave its missions in the kingdom.
Higher oil prices are a negative for India, which imports the bulk of its energy requirements, as they can increase inflation, strain its fiscal deficit and hit corporate profits.