The Hang Seng Index fell 0.4 percent to 17,569.38 at the lunch break in local trading, remaining on track for its third consecutive weekly rise. The Tech Index lost 1.5 percent, while the Shanghai Composite Index gained 0.3 percent.
The decline in Hong Kong follows the sell-off on Wall Street after US leaders expressed doubts about the impending rate cut due to recent mixed economic data. Fed Chairman Jerome Powell will deliver his speech at the Jackson Hole symposium at 10 a.m. New York time on Friday, where he is likely to voice his support for a rate cut ahead of next month’s rate decision.
Gaming company NetEase lost 12.9 percent to HK$124.60, the biggest loser among the 82 blue-chip index members, after its second-quarter results fell below expectations. Shipping giant Orient Overseas International tumbled 7.7 percent to HK$106 after its interim profits plunged 26 percent year-on-year.
Technology stocks were generally weaker. Chinese internet search giant Baidu lost 5.4 percent to HK$81.80 after reporting flat second-quarter revenue. Food delivery platform Meituan lost 1.6 percent to HK$107.30.
“In certain industries and individual stocks, the price fluctuations will be relatively large if there are unexpected developments in the financial report,” said Jason Chan, chief investment strategist at Bank of East Asia. However, the Hong Kong stock index will not show much volatility overall, but mainly some ups and downs, he added.
The U.S. economy is still relatively stable despite some data problems, he said, adding that these factors would not necessarily hurt Hong Kong stock prices, but would only cause small short-term adjustments.
Mainland developer Longfor fell 0.8 percent to HK$8.46 ahead of the release of its interim results at midday, while Country Garden Services rose 0.2 percent to HK$4.16 despite its first-half results coming in weaker than already low market expectations.
Ping An Insurance cut its losses and rose 3.6 percent to HK$35.55 after the company reported its best half-year results in four years. Pork producer WH Group rose 1.6 percent to HK$5.60.
Elsewhere, Japan’s Nikkei 225 index rose 0.2 percent, while South Korea’s Kospi was little changed and Australia’s S&P/ASX 200 fell 0.1 percent.
