Hong Kong Stocks Fall as Oil Rises, AI Investment Concerns Weigh

MT Newswires Live10-21

Hong Kong stocks closed lower Wednesday as rising oil prices and concerns over the sustainability of artificial intelligence investment weighed on sentiment.

The Hang Seng Index fell 215.87 points, or 0.9%, to close at 23,651.87, while the Hang Seng China Enterprises Index lost 86.85 points, or 1.1%, to finish at 7,943.41.

Brent crude rose 1.1% to $110 a barrel as escalating conflict in the Gulf heightened concerns over supply disruptions, adding to inflation risks and pressure on borrowing costs.

Meanwhile, markets broadly expect the Federal Reserve to hold interest rates at its Oct. 28 meeting before potentially raising them in December.

Economists also expect the Bank of Japan to keep rates unchanged on Oct. 30 before a possible hike in December.

In corporate news, Vobile (HKG:3738) closed 5% lower after planning to issue HK$530 million in convertible bonds due in 2027 under a general mandate.

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