Hong Kong stocks slipped 37 points, or 0.1%, to 27,789 in Thursday morning trade, breaking a six-session winning streak and easing from a 4-1/2-year high, as U.S. futures fell after Fed Chair Powell flagged persistent inflation alongside solid growth, offering little clarity on the timing of rate cuts while holding rates, as expected, after three cuts in 2025. Caution also set in ahead of China’s official January PMI release this weekend, following late-2025 gains in both manufacturing and services. Losses were led by tech and consumer names, with declines in Sands China (-6.9%), H World Group (-4.5%), China Resources Land (-2.8%), and Galaxy Entertainment (-2.2%). Still, weakness was partly offset by signs of recovery in Hong Kong’s property market, where housing prices rose modestly in 2025 after four years of declines. Meanwhile, the HKMA kept its base rate at 4.0%, tracking the Fed move amid the city’s policy alignment under the currency peg.
