Hang Seng Weakens, Market Wary of Fed's "Hawkish Cut"
Hong Kong stocks opened lower on Tuesday, with the Hang Seng Index falling around 196 points, or 0.8%, to 25,565, extending its decline for a second session. Sentiment was weighed down by concerns that the US Federal Reserve might make a "hawkish cut" on Wednesday, lowering interest rates while signaling a possible pause in cuts in January. The benchmark index briefly touched a two-week low as investors cautiously awaited the release of China's November inflation (CPI) and producer price (PPI) data, due on Wednesday.
However, selling pressure was somewhat mitigated after China's Politburo pledged to boost domestic demand and support the economy with more proactive measures in 2026, including a more expansionary fiscal policy and looser monetary policy. On the corporate side, tech sentiment came under scrutiny after US President Donald Trump said Nvidia would be allowed to ship its H200 series AI chips to select Chinese buyers under national security conditions. On the Hong Kong stock exchange, several large stocks fell sharply, including China Hongqiao Group (-2.9%), Zijin Gold International (-2.8%), Pop Mart International (-2.4%), and Xiaomi Corp. (-1.6%), reflecting continued strong selling pressure in the market. (az)
Source: Newsmaker.id
