Hong Kong stocks extended losses to a second session on Wednesday as a sell-off in global bond markets hit equity markets, while investors await China's Golden Week holiday data.
Stronger-than-expected U.S. job openings data sent the 10-year yield to the highest since 2007, challenging equity valuations. Broader Asian stocks sank to 11-month lows on Wednesday.
** Hong Kong's Hang Seng Index dipped 1.04%, and the Hang Seng China Enterprises Index declined 1.34%.
** Hang Seng Tech Index tumbled 1.71%.
** Market turnover remains low as the China-Hong Kong Stock Connect program is closed for the golden week holiday in mainland China.
** Meanwhile, all eyes are on China's holiday demand data, which is expected to see some recovery. But continued concerns over the property sector may offset some of the optimism.
** "The initial days of the holiday showed the service consumption recovery remaining strong," HSBC economists said in a report, citing government data for the first three days of the holiday period, which showed almost 400 million domestic trips were made, rising 75% year-on-year.
** Total domestic tourism revenue for the first three days jumped 125% year-on-year to over 340 billion yuan ($46.57 billion), official data showed.
** However, demand for property remains sluggish despite policy easing over the last few months.
** Citigroup said September sales for 35 listed property companies tracked by the bank were softer-than-expected.
** "As some buyers await more easings shortly, September sales only marginally edged up," Griffin Chan, property analyst at Citigroup, said in a note.
** China Evergrande failed to sustain its rally, and slumped 8.5% by midday. Hong Kong-listed mainland property firms have lost 0.8%, or 38%, so far this year. ($1 = 7.3010 Chinese yuan renminbi) (Reporting by Summer Zhen; Editing by Sonia Cheema)