Chinese stocks listed in Hong Kong fell for a second day, with technology names being the biggest drag ahead of a Federal Reserve decision where policymakers are expected to hike rates.
(Bloomberg) — Chinese stocks listed in Hong Kong fell for a second day, with technology names being the biggest drag ahead of a Federal Reserve decision where policymakers are expected to hike rates.
The Hang Seng China Enterprises Index ended the session down 1.4%, after dropping as much as 2.2%, with Alibaba Group Holding Ltd. and Tencent Holdings Ltd. weighing the most. Energy-related shares were among the top losers in Hong Kong’s benchmark Hang Seng Index after oil tumbled 5% on Tuesday. A gauge of Macau casino stocks plunged more than 4.4% on profit-taking.
“Hong Kong stocks are affected by the Fed’s decision tomorrow, and traders are reluctant to place bets,” said Hao Hong, chief economist at Grow Investment Group.
READ: Fed Readies to Pause With One Last Hike: Decision-Day Guide
The HSCEI gauge is extending losses after a 0.3% drop on Tuesday, when trading in Hong Kong resumed after a holiday. An unexpected contraction in China’s manufacturing in April has sown more doubts over the strength of the nation’s recovery even as data from the Golden Week holiday showed upbeat travel and shopping spending. Onshore markets will reopen on Thursday.
–With assistance from Helen Yuan.
(Updates with closing prices in second paragraph)
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