Hong Kong Market slips as resurgent Fed fears offset China reopening hopes

6 Dec 2022 , 02:45 PM

Hong Kong share market closed lower on Tuesday, 06 December 2022, retreating from a three-month high, as concerns over a hawkish Federal Reserve amplified by stronger-than-expected economic data. However, market losses were limited as more cities lifted anti-COVID measures. At closing bell, the benchmark Hang Seng Index declined 77.11 points, or 0.4%, to 19,441.18. The Hang Seng China Enterprises Index was down 53.34 points, or 0.8%, to 6,652.95. For the first time in about two years, Chinas capital city Beijing relaxed its norms for coronavirus test requirements on Tuesday, following the relaxation of anti-COVID curbs in several major cities over the weekend. Media reports also suggested that the Chinese government is gearing up to withdraw more curbs under its strict zero-COVID policy, following a wave of unprecedented protests against the law. The Chinese mainland on Monday reported 4,988 locally transmitted confirmed Covid-19 cases and 22,859 local asymptomatic infections, Chinas National Health Commission said on Tuesday. The hotter-than-expected reading of November ISM Services data came on the heels of a survey last week that showed stronger-than-expected job and wage growth in November, challenging hopes that the Fed might slow the pace and intensity of its rate hikes amid recent signs of ebbing inflation. The Fed is meeting next week for its last policy confab for the year. The expectation is that it will raise rates again, but more likely by a smaller half-percentage point increment than it has at each of its last four meetings. Among blue chips, Alibaba Group Holding tumbled 3.9% to HK$89, and Tencent Holdings declined 0.4% to HK$312.80 while NetEase and JD.com retreated 6.5% and 2.7%, respectively. WuXi Biologics and Hansoh Pharma both slumped by 3 to 4.3%. Powered by Capital Market – Live News