AI Rally Stalls, Hang Seng Falls
Hong Kong stocks closed lower in Thursday's trading (Aug 6) as technology shares came under renewed pressure. Investors turned cautious following the artificial intelligence-driven rally seen in the previous session.
The Hang Seng Index fell 1.5%, or approximately 385 points, to 25,530, while the Hang Seng China Enterprises Index declined 1.2% to 8,499.
The downward pressure stemmed from weakness in tech stocks following a decline on Wall Street. Investors began to reassess overly high expectations regarding spending and growth in the AI sector.
The market is also awaiting the release of U.S. Nonfarm Payrolls data on Friday. Earlier, weaker private-sector employment data reinforced expectations that the Federal Reserve would hold interest rates steady in the near term.
Nevertheless, the market still sees a roughly 54% probability of a Fed rate hike in September. This outlook has kept investors cautious regarding risk assets, including technology stocks.
On the corporate front, shares of Swire Properties dropped more than 4%, despite the company returning to profitability in the first half of the year. This movement indicates that investors remain more focused on future prospects than on current financial results.
Source: Newsmaker.id
