HK stocks rise as focus turns to US earnings

Asian share markets got off to a cautious start on Monday as earnings season loomed as a challenge to sky-high tech valuations, while oil was choppy after strikes on shipping and airports in the Gulf. In Hong Kong, the benchmark Hang Seng Index opened up 223 points, or 0.9 percent, at 24,434. The China enterprises index was up 81 points, or 1 percent, at 8,229 and the tech index was 43 points, or 1.03 percent, higher at 4,241. Up north, the Shanghai Composite Index opened down six points, or 0.18 percent, at 3,806. The Shenzhen Component Index was 54 points, or 0.43 percent, lower at 12,586 while the ChiNext Index slipped 19 points, or 0.65 percent, to 3,023. Brent futures started higher but soon slipped 1.1 percent to US$103.50 a barrel, away from the recent top of US$109.97 while US crude futures lost 1.2 percent to US$90.73 a barrel. The Kospi in Seoul opened 47 points, or 0.72 percent, lower at 6,578 and slipped further to be 177 points down at one stage before lunch. Trade was thin with Japan markets shut and the US on a partial ⁠holiday ahead of the earnings season with major US banks kicking off on Tuesday. S&P 500 earnings are ⁠expected to have jumped by more ⁠than 30 percent in the third quarter, according to LSEG IBES, though the bulk of that comes from the tech sector. My Bui, an economist at AMP, noted all the gains in the S&P 500 since mid-September had been ⁠in tech, while investors were demanding higher yields to fund the ‌massive borrowing for AI. The US investment-grade credit default swap index, which tracks the cost of insurance against default, had also risen sharply to its highest level since the Iran war began. "Overall, wider ‌spreads suggest investors are questioning whether AI revenues can keep pace with rising borrowing costs," added Bui. "Corporate bond issuance to fund AI capex, combined with ⁠wider high-yield spreads, will raise refinancing costs as the current wave of debt matures over the next few years." (Reuters & Xinhua) Edited by Edmond Fong

2026-10-12 11:10:00