Hang Seng posts biggest weekly drop since August on Fed tightening worries

** The sub-index of the Hang Seng tracking energy shares fell 1%, the IT sector slipped 0.54%, and the property sector dipped 0.65%. ** BYD Co Ltd was the biggest loser on the Hang Seng, diving 9.02% and leading a slide in Hong Kong-listed electric vehicle makers following a drop in Tesla's shares on Thursday.


Reuters | Hong Kong | Updated: 28-01-2022 14:34 IST | Created: 28-01-2022 14:24 IST
Hang Seng posts biggest weekly drop since August on Fed tightening worries
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Hong Kong's Hang Seng index fell on Friday, capping off its worst week since August amid global investor jitters sparked by rising expectations of monetary tightening by the U.S. Federal Reserve.

** At the close of trade, the Hang Seng index was down 56.92 points, or 1.08%, at 23,550.08. The index lost 5.67% for the week, its biggest weekly percentage drop in 23 weeks. ** The Hang Seng China Enterprises index fell 0.98% to 8,210.29. It slumped 6.57% for the week.

** Financials were the biggest drag on the day, with a sub-index tracking the sector down 1.27%. ** In its latest policy update on Wednesday, the Fed indicated it was likely to raise rates in March, as widely expected, and reaffirmed plans to end its pandemic-era bond purchases that month before launching a significant reduction in its asset holdings.

** The Fed funds futures market is pricing in as many as five U.S. hikes this year, with some analysts forecasting six. ** The sub-index of the Hang Seng tracking energy shares fell 1%, the IT sector slipped 0.54%, and the property sector dipped 0.65%.

** BYD Co Ltd was the biggest loser on the Hang Seng, diving 9.02% and leading a slide in Hong Kong-listed electric vehicle makers following a drop in Tesla's shares on Thursday. ** Shares of Hopson Development Holdings Ltd dropped 17.14% after PricewaterhouseCoopers (PwC) agreed to resign as its auditor.

** The sub-index tracking properties and construction stocks fell 0.97%. ** China's main Shanghai Composite index closed down 0.97% at 3,361.44, while the blue-chip CSI300 index ended down 1.21%.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.12%, while Japan's Nikkei index closed up 2.09%. ** The yuan was quoted at 6.364 per U.S. dollar at 0810 GMT, 0.08% firmer than the previous close of 6.369.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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