Hong Kong stocks slumped by the most in two months after the Federal Reserve flagged an increasing tariff-induced inflation risk for the economy while the conflict in the Middle East disrupted global oil supply.
The Hang Seng Index tumbled 2 per cent to 23,237.74 on Thursday to mark the worst sell-off since the 13 per cent drop on April 7 when US President Donald Trump announced the so-called reciprocal tariffs. All but nine of the 85 index members dropped.
The Hang Seng Tech Index lost 2.4 per cent. The CSI 300 Index and the Shanghai Composite Index of onshore stocks both retreated by 0.8 per cent.
Alibaba Group Holding slid 2 per cent to HK$110, and Tencent Holdings also fell by 2 per cent to HK$498. Hong Kong developers fell as the room to cut rates narrowed, with Sun Hung Kai Properties losing 2.1 per cent to HK$83.45 and Hang Lung Properties slipping 2.2 per cent to HK$6.68.
The Fed kept borrowing costs unchanged for a fourth time…
