Hong Kong stocks fell at the start of Thursday's trading session, fueled by fresh fears of a central bank rate hike following the release of key US economic data, ahead of high-level talks between US and Chinese delegations expected later in the day.
The Hang Seng Index shed 0.7%, or about 185 points, to 24,649.45. The Hang Seng China Enterprises Index also lost 0.7%, or 58 points, to 8,215.55.
US markets ended lower on Wednesday after a hot reading of S&P Global's Flash U.S. Composite PMI Output Index data, which tracks business activity in the manufacturing and services sectors. That sent Treasury yields surging and raised the odds of a quarter-point hike by the Federal Reserve in October to keep inflation in check.
Elsewhere, U.S. President Donald Trump and Chinese President Xi Jinping will sit down for a meeting in Washington later today, which will be closely monitored. The leaders of two economic superpowers are expected to discuss trade, technology, and tensions in the Middle East, among other matters.