FX.co ★ Hong Kong Stocks Face Pressure as AI Selloff Deepens

The Hang Seng Index fell 1.2%, or 290 points, to around 24,030 on Thursday, after stronger-than-expected US inflation data fueled concerns about further Federal Reserve rate hikes and weighed on global technology and AI-related stocks. The decline tracked another sharp sell-off on Wall Street, where the Nasdaq lost 1.88% on Wednesday, its steepest one-day drop since July.

Regionally, technology and semiconductor shares remained under pressure as investors awaited TSMC’s earnings for clearer signals on semiconductor demand. At the same time, Brent crude eased to about US$104.67 per barrel, though ongoing tensions near the Strait of Hormuz continued to stoke worries over energy supply disruptions and persistent inflation.

Investors also monitored the Hong Kong debut of Transsion Holdings, with the smartphone maker seeking to raise up to HK$3.36 billion amid rising memory costs and margin pressures. Among the notable decliners were Tencent (-1.8%), Lenovo (-8.8%), Kingboard Laminates (-5.8%), Z.AI (-6.3%), and SMIC (-4.0%).