Hong Kong stocks stumble after 2 days of gains as investors await policy signals
Caution returns ahead of US Federal Reserve and Bank of Japan meetings, as well as China’s economic work conference
The Hang Seng Index fell 1.3 per cent to 25,760.73 at the close, halting a two-day streak of gains. The Hang Seng Tech Index dropped 1.6 per cent.
On the mainland, the CSI 300 Index and the Shanghai Composite Index both retreated 0.5 per cent.
Alibaba Group Holding sank 2.2 per cent to HK$153.60 and Tencent Holdings lost 1 per cent to HK$611. Online game operator NetEase retreated 2.9 per cent to HK$217.80 and bottled water maker Nongfu Spring declined 2.5 per cent to HK$48.10. China Construction Bank lost 3.9 per cent to HK$7.84 after trading ex-dividend, with investors who bought the stock from Wednesday onwards not entitled to an interim dividend of 0.1858 yuan per share.
Caution returned to the market after a recovery in risk appetite spurred a rebound in Hong Kong stocks alongside global equities earlier this week. Investors are now gearing up for the coming policy meetings by the US Federal Reserve and the Bank of Japan (BOJ) in the coming weeks, with the rate decisions expected to have a pronounced impact on global capital flows.
“Hong Kong stocks will face some external disruptions in the near term,” said Zhang Sida, an analyst at Guoyuan International. “A rate cut in the US isn’t a done deal yet before the release of economic data, and Japan’s central bank has a very hawkish tone.”