Hong Kong Stocks declined for third straight session on Thursday

Hong Kong stocks were poised for their third straight session of declines on Thursday as a firm dollar ramped up concerns over capital outflows, while the index tracked sluggish Asian peers lower with China markets being closed for National Day holiday.

China's financial markets are closed for the National Day holiday and will resume trade on Oct. 8.

The Hang Seng Index was down 1.68 per cent at 26,635.01, as of 0456 GMT; while Chinese H-shares listed in Hong Kong dropped 2.13 per cent to 10,556.52.

Around the region, MSCI's Asia ex-Japan stock index dropped 1.52 per cent, while Japan's Nikkei index slipped 0.27 per cent.

Hawkish comments by the U.S. Federal Reserve's Chairman Jerome Powell on Wednesday pushed the U.S. dollar higher, putting pressure on Asian currencies.

The offshore yuan is trading around 6.90, giving up gains on Wednesday.

Weaker PMI figures in Hong Kong also weighed on the local market.

The three biggest H-shares percentage decliners were ZhongAn Online P & C Insurance Co Ltd, which dropped 5.68 per cent, CNOOC Ltd, which lost 4.11 per cent and China Shenhua Energy Co Ltd, which slipped 3.89 per cent.

The top gainers among H-shares were China Gas Holdings Ltd, which climbed 1.43 per cent, followed by Guangdong Investment Ltd, which gained 0.72 per cent and China Railway Group Ltd, which rose 0.39 per cent.

The sub-index of the Hang Seng index tracking energy shares slid 3.19 per cent, while the IT sector fell 2.01 per cent.

(With inputs from agencies.)