Hong Kong stocks rise for first time in seven days as US Treasury yields fall from seven-year high

Stocks listed in Hong Kong rose on Wednesday for the first time in seven days, as equities received a respite after a drop in US Treasury yields.

The Hang Seng Index rebounded by 0.1 per cent, snapping a losing streak that had sent the city’s benchmark down by 5.8 per cent over the past six days. Buying sentiment remained weak – the number of shares that changed hands on Wednesday was about a fifth below the bourse’s 30-day average, according to Bloomberg data. In mainland China, the Shanghai Composite Index rose for a second day.

The sell-off in Hong Kong stocks was halted after the yield on benchmark 10-year US Treasuries fell from a seven-year high. Higher US debt yields, which have already swept global financial markets, from stocks to developing economy currencies over the past week, weighed on equity valuations and triggered a capital flight, particularly from emerging economies.

“The sentiment has recovered, but the magnitude of the rebound is quite moderate,” said Chen Hao, a strategist at KGI Securities in Shanghai. “The market has not entirely recovered from the global decrease in risk appetite. On top of that, China’s upcoming economic data has also made the market nervous, given the current progress on the trade war.”

China’s statistics bureau is due to release September data on imports and exports on Friday, and third-quarter economic growth figures a week later. Overseas shipments have probably increased by 8 per cent from a year earlier, slowing from 9.8 per cent in August, according to a median estimate of 22 economists polled by Bloomberg.

The Hang Seng Index gained 20.16 points to 26,193.07. The Hang Seng China Enterprises Index, or the H-share gauge, added 0.2 per cent.