The Hong Kong stock market experienced a significant downturn, influenced by global economic factors and geopolitical tensions. According to Ming Pao, the anticipation of interest rate cuts has diminished, leading to pressure on U.S. stocks overnight. Additionally, the Federal Reserve has signaled a hawkish stance, causing the U.S. Dollar Index to rise above the 100 mark. Rising tensions in the Middle East have driven up oil prices, further impacting Asia-Pacific stock markets, which generally saw declines.
Hong Kong stocks opened lower and continued to fall, with the market dropping nearly 580 points at its lowest. The Hang Seng Index closed at 25,500 points, down 524 points, breaking below the 26,000-point threshold and ending a three-day rally. Market turnover increased to over 300 billion Hong Kong dollars.
Tencent Holdings (0700), known as the "stock king," expanded its investment in artificial intelligence, prompting concerns among major financial institutions about short-term profit impacts. Consequently, target prices were reduced, leading to a 6.8% drop in Tencent's stock. Alongside Alibaba Group (9988), Tencent's decline contributed to a nearly 240-point drop in the overall market.
Catherine
