Hong Kong Stocks Fall for Third Session

The Hang Seng Index fell 360 points, or 1.5%, to 23,950 on Thursday, extending losses for a third consecutive session and the lowest since July 2025, as investors shunned risk after the Federal Reserve struck a more hawkish tone, signaling that further policy tightening may still be needed to contain inflation. The prospect of higher US interest rates lifted Treasury yields and the dollar while pressuring Wall Street overnight, dampening sentiment across Asian markets. Locally, the Hong Kong Monetary Authority left its base rate unchanged at 4.0%, mirroring the Fed's decision to hold rates steady. Investors also remained cautious amid lingering uncertainty over the global economic outlook and the potential impact of prolonged higher interest rates on corporate earnings and capital flows. Financial, technology, retail, and energy shares led the retreat, with notable losses from Kingboard Laminates (-4.3%), Pop Mart (-3.4%), Xiaomi (-2.5%), SMIC (-1.9%), and Tencent (-1.2%).

The Hang Seng Index slipped 182 points, or 0.7%, to close at 24,312 on Wednesday, extending losses from the previous session as investors remained cautious ahead of the Federal Reserve's policy decision, where interest rates are widely expected to remain unchanged, while weighing hopes for additional policy support from China. Market sentiment remained mixed, with traders closely monitoring the Lujiazui Forum in Shanghai for clues on Beijing's next steps to support the slowing economy, while also positioning for the Fed's first policy meeting under Chairman Kevin Warsh. Concerns over China's uneven recovery and continued investor preference for AI-related stocks elsewhere kept gains in check. Technology shares were among the market's better performers, led by gains in Knowledge Atlas (12.6%), while Kingboard Holdings advanced 3.1%. However, the broader market remained under pressure, with notable declines from Tencent Holdings (-0.5%), Xiaomi (-0.9%), and China Hongqiao (-2.0%).

The Hang Seng Index fell 349 points, or 1.4%, to close at 24,494 on Tuesday, snapping a two-session rally as investors locked in recent gains following the market's strong advance at the start of the week. Sentiment was also subdued ahead of key Chinese economic data releases, including industrial production, retail sales, house prices and the unemployment figures, which could offer fresh insights into the strength of the country's economic recovery. Meanwhile, weakness in finance and technology stocks added pressure to the benchmark, with both sectors pulling back after leading gains in the previous session. Among notable laggards included Tencent Holdings (-2.9%), Semiconductor Manufacturing International Corporation (-3.9%), Kingboard Laminates (-1.8%), Pop Mart International (-1.8%), and China Hongqiao Group (-7.1%). In contrast, Knowledge Atlas and Lenovo rose 1.4% and 4.3%, respectively.