Hong Kong stocks drop after Fed’s failure to signal aggressive rate road map
‘The challenge for investors is a Fed that is not yet willing to endorse their discounted future path of much lower interest rates,’ analyst says
The Hang Seng Index declined 1.4 per cent to 26,554.85 at the close, after jumping as much as 0.6 per cent to top 27,000 points. The Hang Seng Tech Index slid 1 per cent. On the mainland, the CSI 300 Index slipped 1.4 per cent, while the Shanghai Composite Index lost 1.2 per cent.
WeChat operator Tencent Holdings slumped 3 per cent to HK$642, while home appliance producer Midea Group slid 2.6 per cent to HK$83.55. Sportswear producer Anta Sports Products fell 2.5 per cent to HK$94.30, and online-game provider NetEase tumbled 2.4 per cent to HK$240.40.
Limiting losses, search-engine giant Baidu added 1.4 per cent to HK$132.80, while blind box toymaker Pop Mart International jumped 4.6 per cent to HK$267.20. Lender HSBC Holdings rose 0.6 per cent to HK$107.20, and power-tools maker Techtronic Industries gained 0.7 per cent to HK$101.50.
“Markets have already discounted significant further Fed easing,” said Larry Hatheway, global investment strategist at Franklin Templeton Institute. “Today’s news met expectations, but the challenge for investors is a Fed that is not yet willing to endorse their discounted future path of much lower interest rates.”