Alibaba, Tencent weigh on Hong Kong stocks as traders search for clues about Fed rate cut
- With China leaving its benchmark lending rates untouched as expected, investors patiently await developments on the Federal Reserve front
The Hang Seng Index closed 0.3 per cent lower at 17,511.08, reversing a 0.8 per cent advance on Monday. The Tech Index fell 0.5 per cent, while the Shanghai Composite Index dropped 0.9 per cent.
Personal hygiene products maker Hengan International tumbled 6.5 per cent to HK$23.90, while China Resources Beer shed 5.6 per cent to HK$22.65 after their earnings trailed analysts’ projections. Jefferies cut the brewing company’s price target to HK$37.38 from HK$42.
Some tech giants also gave up some of their gains from the previous session. Alibaba fell 1.3 per cent to HK$80.40 and Tencent declined 0.6 per cent to HK$370.40.
Home appliance maker Haier Smart Home declined 3.0 per cent to HK$22.75, JD Health dropped 4.8 per cent to HK$22.05 and personal computer manufacturer Lenovo Group down 2.3 per cent to HK$9.43.
The market is lacking direction because investors are looking for clues about the Federal Reserve’s rate cut from the Jackson Hole meeting, said Kenny Wen, head of investment strategy at KGI Asia. “Without new catalysts, the Hang Seng Index faces resistance, while some investors are choosing to lock in profit,” he added.
