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Source: Newsmaker.id
The Hang Seng Index fell 1.0% to close at 24,315 in Wednesday’s (Nov 11) trading session. The decline followed a previous rally that triggered profit-taking, while pressure from global tech stocks and growing expectations of a U.S. interest rate hike weighed on investor sentiment.
Global markets have turned cautious again after U.S. inflation data came in higher than expected, and hawkish remarks from Federal Reserve officials reinforced expectations for an interest rate hike in December. On Wall Street, the Nasdaq dropped 1%, with Nvidia plunging 6.5% amid concerns regarding its market position and issues surrounding a data center project in Ohio.
Pressure on the tech sector has been further compounded by U.S.-China competition in artificial intelligence and uncertainty regarding technological cooperation, ahead of a scheduled meeting between Donald Trump and Xi Jinping on November 18–19. These conditions have led investors to become more selective regarding Hong Kong-listed tech stocks.
Locally, Alibaba shares fell 2.87%, Tencent weakened by 2%, Xiaomi dropped 1.6%, AIA corrected by 0.6%, Wuxi Biologics declined 1.5%, and HKEX fell 0.7%. The technology, financial, and biotechnology sectors were the primary drags on the index.
Newsmaker Analysis: The current pressure on the Hang Seng stems from a combination of profit-taking, weakness in global tech stocks, and rising expectations for U.S. interest rate hikes. Investors will also be closely monitoring developments in U.S.-China relations, as the upcoming Trump-Xi meeting could serve as a significant catalyst for both the tech sector and the Hong Kong stock market. (arl)
Source: Newsmaker.id