Asian Stocks Slide as Hang Seng Falls 2.4 Percent and Oil Climbs

Updated 08:15 UTC, Oct 22, 2026: Hang Seng closes down 3.98 percent, Taiex down 1.81 percent, Europe lower

Hong Kong closed sharply lower on Thursday. The Hang Seng Index fell 949.49 points, or 3.98 percent, to close at 22,918.25, a much deeper loss than the 2.4 percent slide seen at midday. Taiwan's Taiex fell 846.34 points, or 1.81 percent, to close at 46,041.43. Europe followed Asia lower, with the Euro Stoxx 50 down 1.56 percent at 6,110.78.

Reuters reported that Asian stocks sank to their lowest level in nearly three months on Thursday, with the MSCI index of Asia-Pacific shares outside Japan down 1.8 percent. Technology shares led the selloff. Reuters said Wall Street earnings failed to calm worries over the rising cost of AI investment, while higher oil prices on escalating Gulf tensions weighed on risk sentiment. Tokyo Electron fell more than 6 percent in Japan, and Alibaba fell 6.5 percent in Hong Kong, Reuters reported.

The selloff came after Wall Street closed higher on Wednesday, October 21. Reuters said France stayed under pressure in Europe, with its 10 year bond yield above 5 percent for the first time since 2002, ahead of a Moody's review of France's Aa3 rating due on October 23.

Updated 07:32 UTC, Oct 22, 2026: Kospi closes down 3.52 percent, Nikkei closes down 2.65 percent

Seoul and Tokyo closed sharply lower on Thursday, with final losses bigger than the midday slide reported earlier. South Korea's Kospi closed down 201.9 points, or 3.52 percent, at 5,533.76, according to closing figures reported by PANews and KuCoin News and confirmed for Seoul by the Seoul Economic Daily, which put the close at 5,533.77. The fall erased the Kospi's 3.29 percent gain on Wednesday, when it had closed at 5,735.66.

In Seoul, SK Hynix closed down 5.48 percent and Samsung Electronics closed down 4.02 percent. In Tokyo, the Nikkei 225 closed down 1,713.40 points, or 2.65 percent, at 62,907.84. Hong Kong was still trading when Seoul and Tokyo closed and remained sharply lower on the day.

Asian stock markets fell across the region on Thursday, with the sharpest losses in Hong Kong and Seoul, as technology shares sank again and oil prices rose after attacks in Saudi Arabia.

At around 0230 GMT, Hong Kong's Hang Seng Index was down 2.4 percent at 23,076.12, Tokyo's Nikkei 225 was down 1.1 percent at 63,917.43, and Shanghai's Composite was down 1.0 percent at 3,674.33, according to figures published by AFP. South Korea's Kospi fell about 2 percent. Sydney, Singapore, Taipei, Wellington, Manila and Jakarta were also in the red.

Tech shares lead the fall

South Korean chipmakers Samsung Electronics and SK hynix each lost about 3 percent, and Japanese chip firms Kioxia and Tokyo Electron fell by similar amounts, AFP reported. In Hong Kong, Chinese tech names Alibaba, JD.com and Tencent were all hit.

The Hang Seng had already tumbled 2.1 percent, or 490 points, to 23,161 earlier in the session, extending its decline for a second straight day, TradingView News reported. Weakness in technology and battery shares outweighed gains in global markets. CATL had sold off in the previous session after its third quarter profit growth slowed amid hard competition and weaker Chinese auto sales. Among the notable fallers in Hong Kong were Tencent, down 2.1 percent, Lenovo, down 4.9 percent, Xiaomi, down 2.6 percent, AIA, down 1.1 percent, and SMIC, down 2.0 percent.

A later update from investingLive put the Hang Seng fall at about 2.5 percent and said the Shanghai Composite drop of about 1 percent extended a 10 week fall for mainland shares.

Oil rises on Saudi attacks

Confidence was also hurt by a rise of more than 1 percent in oil prices after deadly attacks in Saudi Arabia raised supply worries, AFP reported. Yemen's Houthis struck a Saudi Aramco field and King Fahd International Airport in Dammam, and the United States ordered non essential embassy staff and their families to leave Saudi Arabia as the attacks continued.

At around 0230 GMT, West Texas Intermediate was up 1.2 percent at $98.29 a barrel, and Brent crude was up 1.3 percent at $110.28 a barrel.

Rate hold in Seoul, data ahead in Hong Kong

The Bank of Korea held its benchmark rate at 3.00 percent on Thursday, pausing after quarter point hikes in July and August, with inflation still above its 2 percent target. Investors in Hong Kong are waiting for September inflation data and unemployment figures for July to September, both due later on Thursday.

Attention now turns to next week's United States earnings, with Microsoft, Amazon and Alphabet due to report, followed by Apple and Nvidia in November.