The Hang Seng Index fell 0.4 per cent to 17,569.38 at local noon trading break, still on track for a third consecutive weekly gain. The Tech Index retreated 1.5 per cent while the Shanghai Composite Index gained 0.3 per cent.
The decline in Hong Kong follows the sell-off on Wall Street after top US policymakers cast doubts on the impending rate cut because of the recent mixed economic data. Fed chief Jerome Powell will deliver his remarks at the Jackson Hole symposium at 10am New York time on Friday, where he is likely to indicate his support for cutting interest rates ahead of next month’s rate decision.
Gaming firm NetEase slumped 12.9 per cent to HK$124.60, the biggest loser among the 82 blue-chip index members, after its second-quarter results missed consensus. Shipping giant Orient Overseas International tumbled 7.7 per cent to HK$106 after its interim earnings slumped 26 per cent year on year.
Tech stocks were generally weaker, with Chinese internet search giant Baidu shedding 5.4 per cent to HK$81.80 after reporting flat second-quarter revenue. Food delivery platform Meituan lost 1.6 per cent to HK$107.30.
“In certain industries and individual stocks, the stock price fluctuations will be relatively large if there are unexpected developments in the financial report,” said Jason Chan, senior investment strategist at Bank of East Asia. However, the overall Hong Kong stock index will not see a lot of volatility, mainly some ups and downs, he added.
The US economy is still relatively stable despite some data hiccups, he said, adding these factors will not necessarily hurt Hong Kong stocks, only short-term small adjustments.
Mainland developer Longfor dropped 0.8 per cent to HK$8.46 ahead of its interim results at noon, while Country Garden Services rose 0.2 per cent to HK$4.16 despite its first-half results came in weaker than the market’s already-low expectations.
Trimming the losses, Ping An Insurance advanced 3.6 per cent to HK$35.55 after reporting its best half-yearly performance in four years. Pork producer WH Group gained 1.6 per cent to HK$5.60.
Elsewhere, Japan’s Nikkei 225 Index rose 0.2 per cent, while South Korea’s Kospi was little changed and Australia’s S&P/ASX 200 retreated 0.1 per cent.