Hong Kong's benchmark Hang Seng Index lost 2.6% by midday. (EPA Images pic)

HONG KONG: Hong Kong stocks dropped on the first trading day of October, as the 10-year US Treasury yield hitting a more-than-two-decade high and rising oil prices dampened investor appetite for risk assets.

Hong Kong's benchmark Hang Seng lost 2.6% by midday.

Hang Seng China Enterprises Index and Hang Seng Tech both fell more than 2%.

By sector, biotech and financial shares led the decline.