21.08.202508:40:28UTC+00Tech-Led Losses Drag Hang Seng Ahead of Inflation Data

On Thursday, the Hang Seng Index retreated by 61 points or 0.24%, closing at 25,105. This downturn reversed the earlier positive momentum seen at the market's opening. Market sentiment was dampened as U.S. futures declined following the release of the Federal Open Market Committee (FOMC) minutes, which indicated a hawkish stance due to ongoing inflation concerns. These developments occurred ahead of the Federal Reserve's Jackson Hole symposium. Fed Chair Powell expressed a reluctance to reduce interest rates, citing potential price pressures arising from tariffs during the summer months. Concurrently, reports from Reuters suggested that China is contemplating the use of yuan-backed stablecoins to enhance the global adoption of its currency, indicating a possible shift in its approach to digital assets. Losses were predominantly driven by tech and consumer stocks as investors remained cautious in anticipation of Hong Kong's July inflation data, scheduled for release later in the day. Among significant decliners, China Resources Power dropped nearly 6% to reach a 4-1/2-month low following weaker-than-expected earnings and dividend plans for the first half of the year. Baidu also fell by 2.6% after missing revenue expectations. Other notable declines were seen in Laopu Gold, down 4.0%, Meituan, down 3.0%, and Xiaomi Corp., down 2.3%.