Hong Kong’s stock market plunged 267 points or 1.1% to 23,713 in early Wednesday trading, extending losses for the second day amid broad-based sector declines. Escalating tensions between Israel and Iran continued to pressure sentiment, as U.S. President Trump reportedly is considering a military strike on Tehran.
Market caution also persisted ahead of the Federal Reserve’s interest rate decision later today. The central bank is expected to hold rates steady for the fourth straight meeting, though geopolitical tensions and rising oil prices could dampen hopes for near-term policy easing. Locally, Hong Kong’s seasonally adjusted unemployment rate hit a two-year high of 3.5% in the three months ending May, due to some headwinds including shifts in consumption patterns. EV manufacturer Li Auto tumbled 3.9% after a key shareholder reduced its stake. Other notable decliners included China Resources Land (-3.7%), Meituan (-3.0%), Tencent Holdings (-1.7%), and SMIC (-1.6%).
