Hong Kong Stocks Getting Hammered Before Holiday Break

Hang Seng Index is bleeding out heading into the Mid-Autumn Festival break. Down over 325 points (1.1%) across consecutive sessions, the index is now hovering just above 26,950 and things could get messier on Wednesday.

What went wrong on Monday:

• Hang Seng dropped 183.15 points (-0.67%) to close at 26,957.77
• Tech and finance sectors leading the selloff
• Property plays mixed in choppy trading

The pain list:

• Alibaba group hit hard (down 2.49%), with Ali Health tumbling 2.54%
• Li Auto plummeting 3.31% — biggest loser
• JD.com slid 2.14%, Lenovo retreated 2.21%
• Galaxy Entertainment cratered 2.99%, Techtronic Industries tanked 2.89%
• Xiaomi weakened 2.09%, Haier Smart Home dropped 2.48%
• Only a few gainers: Hang Lung Properties +0.82%, New World Development +0.61%

Why the selloff?

Profit-taking vibes all around. Wall Street set the negative tone with major indices closing in the red: S&P 500 down 0.38%, NASDAQ down 0.67%, Dow down 0.20%. This came after seven straight winning sessions, so traders are cashing in.

Other headwinds: Oracle shares took a hit on AI profitability concerns, and ongoing U.S. government shutdown fears are weighing on sentiment. Plus, delayed economic data is keeping investors on edge.

Energy watch: Crude ticked up slightly — WTI November futures up $0.02 (0.03%) to $61.71/barrel, despite weak demand forecasts.

Bottom line: HK market looking soft going into the holiday. Asian markets likely to follow Wall Street’s bearish lead on Wednesday. Watch out for more profit-taking, especially in tech.