Hong Kong stocks tumbled Wednesday as investors turned cautious ahead of fresh signals from around the globe, including from Japan and the United States.
The Hang Seng Index decreased by around 334.32 points, or roughly 1.3%, to end at 25,760.73. The Hang Seng China Enterprises Index fell by 154.10 points, or around 1.7%, to 9,028.55.
After recording gains in the last two trading sessions, investor sentiment appears to have shifted on the back of the upcoming policy meetings by the U.S. Federal Reserve and the Bank of Japan which may have implications for the global equities market, The South China Morning post reported.
While the Federal Reserve is expected to cut rates, a possible rate increase in Japan could jolt public markets in a reminisce of July last year when a similar move from the Bank of Japan disrupted the so-called carry trade in which investors borrow a low-yield currency and reinvest in other currencies or assets with higher returns, the SCMP reported.
Meanwhile, Hong Kong's private sector expanded at the fastest pace since early 2023 in November, S&P Global said.
The S&P Global Hong Kong SAR Purchasing Managers' Index rose to 52.9 from 51.2 in October, marking a fourth consecutive monthly improvement in operating conditions and the strongest reading since March 2023.
In corporate news, two companies made their debut in Hong Kong.
Chinese mechanical massage services provider Lemo Services (HKG:2539) had a stellar debut, with shares closing at HK$54.50, 36% above their initial public offering price of HK$40.00.
China-based coal-series kaolin company Anhui Jinyan Kaolin New Materials (HKG:2693) had a muted debut, with shares closing at HK$7.46, 2% higher than the offer price of HK$7.30.
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