Soft Start Seen For Hong Kong Shares

Hong Kong's stock benchmark snapped a four-day losing streak on Friday, during which it had dropped nearly 370 points or 1.5%. The Hang Seng Index surged 437.57 points, or 1.74%, to finish at 25,650.87, supported by widespread gains across the technology, finance, and retail sectors. Despite the strong close, Hong Kong shares are projected to open lower on Monday, weighed down by negative global cues and renewed interest rate concerns. Major U.S. indices retreated on Friday following stronger-than-expected August employment data, which drove Treasury yields higher and boosted expectations of Federal Reserve rate increases. The CME FedWatch Tool indicated that the probability of a 25-basis-point rate hike jumped back to 58.4%. With global equity sentiment dampened by rate uncertainty and commodity markets seeing mild consolidation, Asian markets are expected to face headwinds. Hong Kong's index is likely to experience early selling pressure as investors price in tightened monetary policy conditions.