Hong Kong stocks waver near 1-week low as Fed damps March rate-cut bets, Alibaba, Tencent rebound while developers slip

The Hang Seng Index rose less than 0.1 per cent to 15,491.89 at 9.51am local time. The Tech Index gained 0.8 per cent, while the Shanghai Composite Index retreated 1 per cent.

Alibaba Group rebounded 1.7 per cent to HK$70.75, snapping a two-day slide. E-commerce peer JD.com added 0.8 per cent to HK$87.35 and Meituan advanced 1 per cent to HK$63.20. Online games operator NetEase climbed 1.6 per cent to HK$154 and Tencent jumped 1.6 per cent to HK$274.80.

Tempering gains, Sun Hung Kai Properties slipped 0.6 per cent to HK$72.45 and Hang Lung Properties dropped 3.3 per cent to HK$8.78.

The Fed kept its target rate at 5.25 per cent to 5.5 per cent range, unchanged for a fourth straight policy meeting. Chair Jerome Powell said the US central bank was not likely to ease in March, adding that it needed greater confidence that ensure inflation is slowing sustainably towards its mandate of 2 per cent. Prices rose 3.4 per cent in December.

Hong Kong holds base rate steady as Fed votes to ‘keep options open’

The Hang Seng Index tumbled by 9.2 per cent in January, the worst since a 9.4 per cent slump in February last year. That setback also ranked as the worst among major equity benchmarks globally, amid worries about China’s manufacturing slump, domestic price deflation and the yuan outlook.

Other major Asian markets were mixed. Japan’s Nikkei 225 slipped 0.7 per cent and Australia’s S&P/ASX 200 lost 1.1 per cent, while South Korea’s Kospi climbed 0.7 per cent.