12.02.202608:26:19UTC+00Hang Seng Retreats After Recent Strength

The Hang Seng Index fell 234 points, or 0.9%, to close at 27,032 on Thursday, snapping a three-session winning streak as technology, consumer, and financial stocks dragged the market lower.

Risk appetite faded ahead of China’s extended Lunar New Year holiday starting February 15, while Premier Li Qiang’s call for stronger technological innovation and wider adoption of artificial intelligence failed to meaningfully support sentiment. Caution also intensified before the release of January home price data, following December’s report, which showed the sharpest decline in five months.

Losses were partially contained by a rebound in U.S. equity futures, underpinned by resilient labor market indicators and optimism that upcoming inflation figures may justify the Federal Reserve maintaining its current interest rate pause in the near term.

In China, the People’s Bank of China reiterated its commitment to lowering banks’ funding costs, keeping overall financing conditions accommodative, and safeguarding against systemic financial risks, while again emphasizing measures to bolster domestic demand.

On the corporate front, Lenovo fell 4.6% after reporting weaker profits, and NetEase declined 4.1% following a fourth-quarter earnings miss. Alibaba’s Hong Kong–listed shares slipped 0.9%, despite the company’s efforts to reposition its flagship AI product as a consumer-facing intelligent agent.