Hang Seng Index falls below 25,000 points to 2-month low

The Hang Seng Index fell more than 1.3% to break below 25,000 points on Wednesday, reaching its lowest level since April 2 as selling pressure swept across Hong Kong-listed stocks.

The decline tracked a weak open, with the benchmark opening 97 points lower at 25,230, according to exchange data. The Hang Seng Tech Index slipped 12 points to 4,895 at the open, while futures had pointed to a softer session with HSIF opening 34 points lower at 25,231.

"The break below 25,000 is a significant psychological breach that could accelerate selling from algorithmic and momentum-driven strategies," said Kevin Ip, a Hong Kong equity strategist. "The lack of a clear catalyst for the decline suggests the move is driven by a combination of U.S. rate uncertainty and weak sentiment toward Chinese equities."

The selloff unfolded despite a record session on Wall Street, where the S&P 500 edged up less than 0.1% to 7,520.36 and the Dow Jones Industrial Average climbed 182 points to 50,644.28. A sharp drop in oil prices — Brent crude fell 4.6% to $92.25 a barrel and West Texas Intermediate slid 5.5% to $88.68 — had lifted U.S. equities on expectations that lower fuel costs would ease inflationary pressure. The 10-year U.S. Treasury yield slipped to 4.48% from 4.50%, while the offshore yuan traded near 7.25 per dollar, adding to headwinds for Hong Kong-listed Chinese companies.

The Hang Seng Index has now erased gains accumulated since early April, when it last traded below the 25,000 threshold. Investors are watching for potential policy support from Beijing and the upcoming U.S. inflation data for signals on the Federal Reserve's rate path, which could determine whether the selloff deepens or finds a floor in the coming sessions.

This article is for informational purposes only and does not constitute investment advice.