Hong Kong Stocks Reverse Gains; Standard Chartered Earnings Miss Estimates

Hong Kong stocks reversed their gains Tuesday as bearish sentiment prevailed during trading amid artificial intelligence-related jitters.

The Hang Seng Index fell by around 491.59 points, or roughly 1.8%, to end at 26,590.32, while the Hang Seng China Enterprises Index declined by 189.52 points, or 2.1%, to close at 9,007.86.

Markets appeared to be grappling with the potential fallout from AI displacing white-collar workers after a viral Citrini Research Substack post painted a grim picture of the future of employment, the South China Morning Post reported.

In corporate news, Standard Chartered's (HKG:2888) profit attributable to ordinary shareholders fell 6% to $465 million in the fourth quarter from $493 million a year earlier.

Earnings per ordinary share increased to $0.198 from $0.196 in the prior-year quarter, but was below the Visible Alpha estimate of $0.36.

Shares of the bank were up 3%.

Meanwhile, CK Hutchison (HKG:0001) said Panamanian authorities had taken direct control of two canal terminals operated by its subsidiary and ordered staff to leave under threat of criminal prosecution.

The group described the ruling, executive decree, and takeover as unlawful, warning that the actions pose serious risks to terminal operations, health and safety.

Shares of the business conglomerate were down nearly 3%.