Hong Kong Stocks Fall After Fed, HKMA Rate Hikes; Continental Drops 3%
Hong Kong stocks fell Thursday after the Federal Reserve raised interest rates by 25 basis points, prompting a selloff on Wall Street and weighing on investor sentiment across Asian markets.The Hong Kong Monetary Authority also raised its base rate by 25 basis points to 4.25% after the Fed's decision, its first increase since 2023.The Hang Seng Index fell 109.49 points, or 0.4%, to close at 24,604.29, while the Hang Seng China Enterprises Index dropped 31.01 points, or also 0.4%, to 8,175.36.Higher borrowing costs weighed on property shares as investors grew concerned about the pace of the housing recovery. Gold producers and non-ferrous metal stocks also fell heavily as U.S. Treasury yields and the dollar rose.In corporate developments, Continental Holdings (HKG:0513) said it expects a net loss of less than HK$600 million for the fiscal year ended June 30, mainly due to losses from its divested mining business. Shares of the jewelry company fell more than 3%.AI Energy Engineering (HKG:1751) fell nearly 1% after proposing a two-for-five rights issue to raise up to about HK$72.4 million in net proceeds.
