FX.co ★ Hang Seng Under Pressure at Close

On Tuesday, the Hang Seng Index dropped 331 points, equivalent to a 1.3% decline, closing at 25,434, marking its lowest point in two weeks. This downturn extended the market's losses into a second consecutive session as multiple sectors experienced declines. Investors exhibited caution ahead of the U.S. Federal Reserve's upcoming decision on Wednesday. Speculation is rife about the possibility of a "hawkish cut," given the differing opinions within the committee and uncertainty surrounding the successor to Chairman Powell, whose tenure concludes in May 2026. Simultaneously, stocks on the mainland pulled back following recent gains, driven by increased caution before the release of China’s Consumer Price Index (CPI) and Producer Price Index (PPI) data for November on Wednesday. Concerns about deflation remain prominent. Meanwhile, U.S. President Trump announced that Nvidia would be allowed to export its H200 chips to authorized buyers in China. The downward pressure eased slightly after China's Politburo pledged enhanced support in 2026, indicating plans for more proactive fiscal policies and suitably loose monetary settings. Among the top declining stocks were Pop Mart International (-5.4%), SMIC (-4.2%), Xiaomi Corporation (-3.0%), Meituan (-2.0%), and China Resources Land (-3.9%).