Hong Kong stocks fall for fourth day on lofty AI valuations, uncertain Fed policy path
Wall Street sell-off hits Magnificent Seven, while chances of a December Fed rate cut fall below 50 per cent
The Hang Seng Index dropped 0.4 per cent to 25,830.65 at the close of trading, adding to the 1.7 per cent loss on Tuesday. The Hang Seng Tech Index fell 0.7 per cent. On the mainland, the CSI 300 Index gained 0.4 per cent and the Shanghai Composite rose 0.2 per cent.
Among major decliners, smartphone and carmaker Xiaomi dropped 4.8 per cent to HK$38.82, after global investment banks lowered their target prices for the stock following the company’s quarterly results. Although the results were roughly in line with expectations, the banks highlighted risks arising from rising memory chip prices.
Blind-box toymaker Pop Mart International slid 2.3 per cent to HK$206.60. Electric-vehicle maker Li Auto fell 2.6 per cent to HK$71.30 and peer BYD tumbled 0.9 per cent to HK$96.05. Search-engine giant Baidu tumbled 0.2 per cent to HK$111.20 after it reported a 7 per cent drop in third-quarter revenue.
Leading the gainers, online travel-booking agency Trip.com Group added 1.8 per cent to HK$574.50 and online-games provider NetEase advanced 0.3 per cent to HK$215.60, and e-commerce firm Alibaba Group Holding rose 1.2 per cent to HK$156.40.
Overnight in the US, the Dow Jones fell 1.1 per cent, while the S&P 500 lost 0.8 per cent and the Nasdaq dropped 1.2 per cent. A basket of the Magnificent Seven companies declined 1.8 per cent. Nvidia, the focal point of the AI rally, shed 2.8 per cent ahead of the chipmaker’s earnings report later on Wednesday.