The US reported that its September services PMI rose to 58.7, the highest level in nearly five years, while the September manufacturing PMI increased to 56.7, the highest in nearly four years. Market concerns have risen that strong economic data could reinforce the Federal Reserve's rate hike expectations. Current interest rate futures indicate the probability of a rate hike by the end of October has risen to nearly 70%. Overnight, both US stocks and bonds sold off, with all three major indices declining, and the yield on the 10-year Treasury surged above 5.1%.
Rising rate hike expectations have further dampened property stock outlooks, pressuring the entire sector; Henderson Land (00012) fell 0.3% to HK$26.22; CK Asset (01113) dropped 0.4% to HK$46.34; Hang Lung Properties (00101) declined 0.8% to HK$6.52; New World Development (00017) fell 1.2% to HK$5.93; Sino Land (00083) dropped 1.7% to HK$10.05; and Kiu Tsui (01997) fell 1.2% to HK$30.68.
Currently, the Hang Seng Index stands at 24,715, down 118 points or 0.5%, with main board turnover nearing HK$74.3 billion. The Hang Seng China Enterprises Index is at 8,241, down 32 points or 0.4%. The Hang Seng Tech Index is at 4,336, down 42 points or 1%.
| Stock (Code) | Current Price (HK$) | Change (%) |
|---|---|---|
| Sun Hung Kai (00016) | 107.80 | Down 1.19% |
| Henderson Land (00012) | 26.22 | Down 0.30% |
| CK Asset (01113) | 46.34 | Down 0.39% |
| Hang Lung Properties (00101) | 6.52 | Down 0.76% |
| New World Development (00017) | 5.93 | Down 1.17% |
| Sino Land (00083) | 10.05 | Down 1.66% |
| Kiu Tsui (01997) | 30.68 | Down 1.16% |
| Tai Hung Kai Properties (01972) | 24.42 | Down 0.33% |
| Hysan Development (00014) | 15.50 | Down 1.65% |
| Kerry Properties (00683) | 17.36 | Up less than 0.1% |
