Hong Kong stocks dropped on Tuesday, tracking declines on Wall Street, as traders grew anxious about the pace of easing by the Federal Reserve beyond this week’s near-certain rate cut.
The Hang Seng Index fell 1.3%, while the Hang Seng Technology Index fell 1.9%.
In terms of star stocks, Pop Mart fell 5%; SMIC, Nayuki, Bilibili, and Baidu fell 4%; Xiaomi, Laopu Gold, and Li Auto fell 3%; Kuaishou, Meituan, CATL, NetEase, and Alibaba fell 2%; BYD and JD.com fell 1%; Tencent fell 0.4%.
The market jitters came before Fed’s decision on Wednesday, where it is broadly expected to deliver a 25 basis-point rate cut. Some traders have warned the US central bank may signal a slower pace of easing ahead given that still-high inflation and the lack of fresh data during the shutdown have caused divisions among Fed officials.
After this week’s likely cut, money markets are leaning toward two more moves by the end of 2026, down from three signaled barely a week ago.
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