Investors in Hong Kong saw the region's deepest equity losses on Oct. 2 after returning from a public holiday. The Hang Seng Index fell 3% in early trading, marking the steepest drop among major Asian benchmarks as markets reacted to a surge in US yields and dissatisfaction with China's latest stimulus measures.

The downturn follows a period of regional volatility where market participants have grown increasingly critical of the scale of economic support provided by Beijing. Regional shares remained under pressure as higher US Treasury yields shifted investor sentiment away from emerging assets.