Hong Kong Stocks Plunge with Tech Shares Leading Declines: SenseTime Drops 6%, Alibaba Falls Nearly 3%, Gold and Oil Retreat, 190K Crypto Liquidations

Major Asia-Pacific stock indices tumbled today, with Hong Kong's key benchmarks extending losses. The Hang Seng Tech Index briefly plunged 2.7% intraday, while the Hang Seng Index closed down 1.54% and the Hang Seng Tech Index dropped 1.74%, both hitting recent lows.

Tech giants led the declines, with SENSETIME-W slumping 6%, Alibaba falling nearly 3%, and JD.com, NetEase, and Xiaomi Group all dropping over 2%. Baidu and Meituan slid more than 1%, while Tencent Holdings dipped 1.08%, briefly breaking below HK$600 per share.

Gold stocks also retreated across the board: Tongguan Gold plunged 6.92%, Zijin Mining International dropped 6%, Chifeng Gold lost over 5%, Zhufeng Gold declined more than 3%, and Zijin Mining fell 4.41%.

Sectors including defense, wind power, steel, lithium batteries, semiconductors, shipping, solar, and autos broadly weakened. However, some Hong Kong-listed autonomous driving stocks gained, with Zhejiang Shibao surging 12% in Hong Kong after its A-shares hit the daily limit-up. Meanwhile, Uisee Technology soared 118% on its debut.

Analysts attribute the sell-off to fading Fed rate-cut expectations sparking global liquidity concerns and debates over AI valuation bubbles. Technical pressures from slowing mainland fund inflows and year-end lock-up expiries also weighed on the market.

Commodities broadly declined by late afternoon: Brent crude fell 1.25% to $59.8/barrel, dipping below $60 for the first time since May, while WTI hovered near $56. Growing OPEC+ and Americas supply, coupled with slowing demand, are driving expectations of a 2025 oil surplus.

European markets opened lower, with the Euro Stoxx 50 down 0.33%, Germany's DAX off 0.62%, and Italy's MIB slipping 0.19%. Nasdaq 100 futures extended losses to 1%.

Cryptocurrencies saw sharp declines, with Bitcoin breaking below $86,000 (down 4%) and Ethereum tumbling over 6%. Dogecoin and XRP lost more than 5%. Coinglass data shows $600 million in crypto liquidations within 24 hours, affecting 190,000 traders—a trend analysts link to weakening U.S. equities.

Markets await the November U.S. CPI report due December 18, which could sway Fed policy timing. Meanwhile, speculation grows that the Fed may pause cuts until after Chair Powell's May departure, with limited easing room amid persistent inflation.

(Disclaimer: Content is for reference only and not investment advice.)