07.01.202608:25:47UTC+00Hang Seng Ends 0.9% Lower

The Hang Seng Index declined by 251 points, or 0.9%, settling at 26,459 on Wednesday. This decline erased the robust gains achieved in the previous session, as most market sectors fell behind. Investors engaged in profit-taking ahead of China's upcoming December Consumer Price Index (CPI) and Producer Price Index (PPI) data releases later this week. Additionally, data regarding Hong Kong's foreign exchange reserves due for late 2025 were expected today. The market was also affected by geopolitical tensions after China prohibited exports of dual-use goods to Japan, a move that Tokyo described as "completely unacceptable." In the U.S., stock futures displayed mixed movements following record highs on the S&P 500 and Dow Jones indices on Tuesday, amid anticipated data releases that could influence Federal Reserve policy. Despite this, losses were somewhat mitigated as the People's Bank of China (PBoC) committed to reducing banks' reserve requirement ratios and interest rates this year to bolster the Chinese economy. Meanwhile, stocks on the mainland remained at their highest levels in over a decade, supported by increased trading volumes and expectations of profit growth. Leading the declines were Tencent Music, dropping by 5.1%, Kuaishou Technology with a 3.0% dip, Meituan decreasing by 2.2%, and SMIC down by 2.0%.