Hong Kong stocks stumble after 2 days of gains as investors await policy signals

A rebound in Hong Kong stocks took a breather as investors awaited more clarity on policies from the world’s key central banks and Beijing that would shape the outlook for markets next year.\nThe Hang Seng Index fell 0.7 per cent to 25,902.69 as of 10.11am local time. The Hang Seng Tech Index dropped 1 per cent.\nOn the mainland, the CSI 300 Index climbed 0.1 per cent and the Shanghai Composite Index retreated 0.2 per cent.\nAlibaba Group Holding fell 1.5 per cent to HK$154.60 and Tencent Holdings lost 0.6 per cent to HK$613.50. Online game operator NetEase retreated 3 per cent to HK$217.60 and China Construction Bank lost 3.1 per cent to HK$7.91.\nCaution returned to the market after a recovery in risk appetite spurred a rebound in Hong Kong stocks alongside global equities. Investors are gearing up for the coming policy meetings by the US Federal Reserve and the Bank of Japan in the coming weeks, with rate decisions expected to have a pronounced impact on global capital flows.\nThe Fed is widely expected to lower the benchmark interest rate by 25 basis points this month, while Japan’s central bank will probably raise the borrowing costs for the first time since July last year, marking a shift from an ultra-loose monetary policy. Investors remain wary of a repeat of the turbulence that followed Japan’s last rate hike, which unwound the yen carry trade and rattled global assets.\nAttention is also turning to China’s annual central economic work conference, scheduled this month, for clues on how Beijing plans to steer the world’s second-largest economy amid slumping home prices and deflationary pressures.\nTwo companies debuted in Hong Kong. Lemo Services, a massaging equipment maker, surged 76 per cent to HK$70.20 and commodity producer Anhui Jinyan Kaolin New Materials gained 18 per cent to HK$8.61.\nOther major Asian markets all rose, tracking an uptick in US stocks following a rebound in bitcoin. Japan’s Nikkei 225 climbed 0.9 per cent, South Korea’s Kospi rose 1.4 per cent and Australia’s S&P/ASX 200 added 0.2 per cent.\n