The Hang Seng Index slipped 0.2%, or 59 points, to 24,893 on Thursday, mirroring overnight declines on Wall Street after the Federal Reserve left interest rates unchanged but flagged ongoing inflation risks. In tandem with the Fed, the Hong Kong Monetary Authority held its base rate steady at 4.0% under the city’s Linked Exchange Rate System.
Sentiment was further pressured by a sharp rise in longer-dated US Treasury yields, renewed worries over AI-related capital spending following a mixed set of US tech earnings, and escalating tensions in the Middle East that pushed Brent crude up by nearly 8%.
The market’s weakness persisted despite the strong debut of AI optical-module maker Zhongji Innolight, which raised HK$53.4 billion in Hong Kong’s largest IPO in seven years. Investors also stayed cautious ahead of China’s PMI data due on Friday.
Among the notable decliners were Tencent (-0.7%), Xiaomi (-3.0%), Z.AI Co. (-5.2%), SMIC (-2.8%), and Meituan Class (-1.3%).
