Hong Kong stocks closed lower Thursday as technology shares retreated, with investors turning cautious after the previous session's AI-driven rally.
The Hang Seng Index fell 385.54 points, or 1.5%, to close at 25,530.28, while the Hang Seng China Enterprises Index lost 105.00 points, or 1.2%, to finish at 8,498.73.
Technology shares came under pressure after a weaker session on Wall Street, where post-earnings declines prompted investors to reassess lofty expectations for artificial intelligence spending.
Investors also looked ahead to Friday's U.S. nonfarm payrolls report after weaker-than-expected private payrolls data reinforced expectations that the Federal Reserve will keep interest rates unchanged for now.
Futures markets are pricing in a 54% chance of a rate hike in September, according to the CME FedWatch Tool, Reuters reported.
In corporate news, Swire Properties (HKG:1972) fell over 4% despite returning to a first-half attributable profit.