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Hong Kong Market falls on lack of new Fed action

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The Hong Kong stock market finished session steep lower on Thursday, 17 September 2020, on tracking declines in the region and overnight US markets which reflected traders' disappointment over the Federal Reserve's take on the economic recovery outlook. However, market losses capped as the Hong Kong Monetary Authority on Thursday disclosed about HK$130 billion in net inflows of funds into the Hong Kong dollar since April.

At closing bell, the benchmark Hang Seng Index tumbled 1.56%, or 384.78 points, to 24,340.85. The Hang Seng China Enterprises Index lost 1.15%, or 113.64 points, to 9,732.15.

Overnight, the U. S. Federal Reserve said it would keep interest rates near zero until inflation is on track to overshoot the central bank's 2% target.

While the Fed pledged its policy would remain accommodative, it also observed that the pace of economic activity is likely to slow and added that additional stimulus spending may be needed to support gains in the US job market. The Fed said gains in economic activity and employment in recent months remained well below their levels at the beginning of the year, following the conclusion of its last scheduled meeting before the November elections. The Covid-19 crisis continues to weigh on the economy, it added.

Meanwhile, the Bank of Japan (BoJ) kept monetary policy steady on Thursday. In its monetary policy statement, the BoJ said the Japanese economy has started to pick up but remained in a severe situation due to the impact of the coronavirus pandemic at home and abroad.

Top losers included Xiaomi Corp which retreated 6.4% while Wuxi Biologics and Techtronic Industries each fell by 4% and 3.1%, respectively. City train operator MTR Corp led gainers, adding 1.8%.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, September 17 2020. 16:52 IST
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