Hong Kong stocks slip as Fed-cut hopes cool after US PCE
Hang Seng fell 0.3% to 25,566, giving back gains. Nvidia results were strong, but US PCE stayed elevated; Alibaba’s HK$80 billion placement and China industrial profit data also drew focus.
The Hang Seng Index fell 0.3%, or 84 points, to 25,566 on Thursday, giving back part of the previous session’s gains as investors remained cautious despite strong Nvidia earnings.
Nvidia’s revenue more than doubled year-on-year to $96.2 billion in the second quarter, reinforcing optimism over continued AI demand.
However, US inflation remained elevated, with the PCE price index holding at 3.7% year-on-year in July and core PCE at 3.3%, keeping expectations for Federal Reserve rate cuts subdued.
Meanwhile, Alibaba remained in focus after completing its HK$80 billion share placement, with concerns over heavy AI spending and shareholder dilution weighing on sentiment.
On the data front, China’s industrial profits rose 17.6% year-on-year in the first seven months of 2026, slowing from an 18.7% increase in the first half.
Market moves were mixed, with Kingboard Laminates (6.8%), Z.AI (4.2%), and MiniMax (2.8%) advancing, while WuXi XDC (-2.3%) and Xiaomi (-1.0%) declined.