Hong Kong Market falls on Omicron, Chinese economic data; await Fed decision

Hong Kong stock market finished session down on Wednesday, 15 December 2021, extending losing streak to third day this week, as risk aversion selloff continued amid mixed China economic data, concerns about the impact of the coronavirus Omicron variant, and ahead of the Federal Reserve's money policy announcement later in global day.

At closing bell, the benchmark Hang Seng Index declined 0.91%, or 215.19 points, to 23,420.76. The Hang Seng China Enterprises Index dropped 0.9%, or 75.70 points, to 8,342.91.

Risk aversion selloff continued on third consecutive day this week after latest China's economic data further illustrated the mixed economic picture as factory output grew faster than expected in November, while retailers suffered from new curbs to fight rising COVID-19 cases and investment growth slowed. China released a slew of key economic data on Wednesday. Its industrial output for November was up 3.8% year-on-year, more than the 3.5% increase in October. Data also showed that retail sales in November rose 3.9% year-on-year, less than October's 4.9% increase.

Meanwhile, rapid spread of the Omicron variant also dented risk sentiments. The World Health Organization on Tuesday warned the new Covid omicron variant is spreading faster than any previous strain, saying that the variant is probably present in most countries of the world.

Investors are keeping a close eye on the Fed Chairman Jerome Powell policy meeting announcement for indication about quickening of its monthly bond purchase tapering program, as it seeks to combat an ongoing rise in inflation.

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