Hong Kong stocks fall from 3-year high as China leaves key interest rate unchanged

The Hang Seng Index fell 1.2 per cent to 24,460.22 as of 10.01am local time, snapping gains of 5.6 per cent over four days. The Hang Seng Tech Index dropped nearly 2 per cent. On the mainland, the CSI 300 Index slid 0.6 per cent and the Shanghai Composite Index lost 0.4 per cent.

Ping An Insurance Group slumped 4.1 per cent to HK$49.75 after earnings missed analysts’ estimates. Tencent Holdings declined 3.5 per cent to HK$520.50 despite full-year revenue matching expectations. CK Infrastructure Holdings lost 4.1 per cent to HK$48.60 on concerns about the sale of its port assets.

China left its five-year loan prime rate (LPR) and one-year LPR unchanged at 3.6 per cent and 3.1 per cent, respectively, according to the central bank, disappointing investors who had hoped for lower rates to bolster stocks and economic growth.

US stocks rose overnight after Federal Reserve chair Jerome Powell said he saw some room for interest-rate cuts this year. The Fed kept its benchmark interest rate unchanged at a range between 4.25 and 4.5 per cent at its latest policy meeting.

Other major Asia-Pacific markets were mixed. Japan’s Nikkei 225 slipped 0.3 per cent, while South Korea’s Kospi rose 0.5 per cent and Australia’s S&P/ASX 200 added 1.1 per cent.