Hong Kong Market falls ahead of US Fed meeting

Hong Kong share market finished session lower on Monday, 24 January 2022, as sentiment was dampened by tracking Friday's losses on Wall Street, U.S.-Russia tensions over Ukraine, and fears about the Fed tightening monetary policy more aggressively in 2022.

Meanwhile, sentiments also dented amid uncertainty over the outlook for economic reopening as rapid surge of COVID-19 cases. Hong Kong confirmed 140 new coronavirus cases on Sunday in the worst outbreak in 18 months. A top health official warned it might take two to three months to contain the fifth wave of infection.

Market participants were awaited the outcome of the U.S. Federal Reserve's two-day Federal Open Market Committee meeting through Wednesday. Investors remained wary over a further hawkish move by the Fed as they gauge the timing of potential monetary policy changes. Market participants expect a 25 basis-point rate hike at the Fed policy meeting in March and three more by the year-end.

 

At closing bell, the benchmark Hang Seng Index declined 1.24%, or 309.09 points, to 24,656.46. The Hang Seng China Enterprises Index sank 1.47%, or 129.19 points, to 8,658.11.

Shares of technology companies declined the most in the local bourses on tracking global tech selloff, with Alibaba Group Holding (down 6.3%) and JD.com (down 5.6%) leading the pullback. Tencent Holdings slipped 1.1% and Meituan dropped 2.2%.

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