Hong Kong Stocks end lower ahead of Fed rate decision

Hong Kong share market finished session down on Wednesday, 04 May 2022, as investors dumped shares after the city reported that its economy contracted in the first quarter of the year. Also, market appetite for stocks weighed down on caution ahead of the U.S. Federal Reserve's monetary policy decision due out later in the day.

At closing bell, the benchmark Hang Seng Index fell 1.1%, or 232.37 points, to 20,869.52. The Hang Seng China Enterprises Index shed 1.76%, or 129.62 points, to 7,137.63.

The sub-index of the Hang Seng tracking energy shares dipped 0.5%, the IT sector dipped 3.35%, and the Hang Seng Tech Index dropped 3.1%, while the financial sector edged up 0.02% and the property sector climbed 0.33%

HSBC Hong Kong shares rose after it said it will commence a share repurchase of up to $1 billion and has entered into agreements with Merrill Lynch International to handle the buyback beginning on May 4.

In economic news, Hong Kong's gross domestic product shrank 4% in the January-to-March period from a year earlier, reversing the 4.7% growth in the prior quarter, according to Census and Statistics Department report.

The Federal Open Market Committee is widely expected to raise interest rate by 50 basis points. The FOMC's statement following Wednesday's meeting is due for release at 2:00 pm ET, with Powell's press conference scheduled for 2:30 pm ET. The accompanying statement is eyed for clues about how aggressively the central bank plans to tighten monetary policy.

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