The Hong Kong market followed U.S. stocks lower, with the Hang Seng Index dropping 1.85% amid broad weakness across Asian markets. Despite the U.S. government reopening, concerns persist as October's nonfarm payroll report will exclude unemployment data, leaving markets with incomplete labor market insights. The Fed remains divided on near-term rate cuts, with hawkish commentary pushing December cut expectations below 50%.

European tensions escalated as Germany announced plans to exclude Chinese suppliers like Huawei from 6G networks while seeking independence from U.S. and Chinese tech giants. Defense tensions in the Taiwan Strait further dampened risk appetite.

Tech stocks remained under pressure after Japan's Kioxia reported a surprise 60% profit decline, dragging down memory chip stocks globally. SMIC (00981) posted solid earnings but declined due to conservative Q4 guidance, while Tencent (TENCENT, 00700) fell despite beating estimates, as its 2025 capex guidance came in below prior projections. Alibaba (BABA-W, 09988) dropped over 4% despite announcing new consumer-facing AI initiatives.

The hydrogen energy sector surged on policy tailwinds. China's energy regulator issued guidelines promoting integrated development of renewable energy with hydrogen storage. Shandong province plans to deploy over 2,000 hydrogen vehicles and build 38 refueling stations, with multiple regions introducing toll exemptions for hydrogen vehicles.

REFIRE (02570) jumped over 40% after reporting market-leading position in heavy-duty fuel cell systems and 360% overseas revenue growth. SINOHYTEC (02402) gained 3% on its new 260kW liquid hydrogen fuel cell system, while GUOFUHEE (02582) rose nearly 7% after successfully commissioning China's first fully domestic 10-ton/day liquid hydrogen facility.

In healthcare, Ascletis Pharma (01672) surged 15% as its obesity drug combination entered clinical development, with FDA submission planned for 2026. GenScript Biotech (01548) rose 5% as its CAR-T therapy CARVYKTI showed strong growth, now available in 246 global treatment centers.

With a cold snap forecast to push temperatures below -10°C in northern regions, utilities like China Gas (00384) and down jacket maker Bosideng (03998) may benefit from heating demand.

TCL Electronics (01070) highlighted its global expansion, with overseas sales growing 12.7% YTD. Its 75"+ TV shipments surged 61.8% internationally, while Mini LED TV shipments more than doubled. The company's AR glasses subsidiary holds 39% global market share, supporting its high-margin internet services growth.