Hong Kong stocks dropped sharply on Thursday after US Federal Reserve Chair Jerome Powell warned of "meaningful" inflation ahead, and investors grew concerned about potential US involvement in the Israel-Iran conflict.
The Hang Seng Index lost 472.95 points, or 2.0%, to close at 23,237.74, while the Hang Seng China Enterprises Index fell 183.25 points, or 2.1%, to 8,410.94.
The US central bank left interest rates unchanged on Wednesday and penciled in two cuts by the end of 2025.
While the Fed expects two rate reductions in 2025, it trimmed its growth forecast and raised its inflation estimates. In new economic projections released alongside the Fed's statement, policymakers sketched a modestly stagflationary picture of the economy.
"Increases in tariffs this year are likely to push up prices and weigh on economic activity," Powell said. "This is something we know is coming; we just do not know the size of it."
Sentiment further soured after Bloomberg reported that senior US officials are preparing for a potential strike on Iran in the coming days.
In corporate news, Haitian Flavouring and Food made its trading debut in Hong Kong and closed 0.6% higher at HK$36.50, compared with its offer price of HK$36.30.
Source : MT Newswires
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of ...
The Hang Seng Index extended its rally for the third consecutive day in the latest trading session in Hong Kong on Wednesday (February 11). The index rose 0.3%, or 83.23 points, to close at 27,266.38,...
The Hang Seng continued to strengthen on Tuesday (February 10th), rising 156 points (0.6%) to close at 27,183. This marked a second consecutive day of gains, with most sectors contributing to the mark...
Hong Kong stocks surged on Monday morning. The Hang Seng Index rose 488 points, or around 1.8%, to 27,051, rebounding after weakening in the previous session. Sentiment was also lifted by Wall St...
The Hang Seng Index weakened 1.2% to close at 26,559.95 in Hong Kong trading on Friday (February 6). This decline brought the Hang Seng Index to its lowest closing level since January 20, after a slig...
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more...
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data prompted market participants to shift expectations of...
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to...