Investment 17/12/2025

The Hang Seng Index opened 80 points lower at 25,547, then extended its losses, falling as much as 542 points to a low of 25,086, before closing down 393 points or 1.53% at 25,235. The Tech Index fell 95 points or 1.74% to 5,402. Main board turnover was HK$201.5 billion.

Yesterday's relatively low turnover during the decline suggests that selling pressure was not too severe. The recent weakness in Hong Kong stocks is mainly due to volatility in US stocks and weak Chinese economic data. Given the significant gains the Hang Seng Index has accumulated this year, profit-taking is possible. However, if it breaks below the double-top neckline at 25,145, it may fall to the 250-DMA (23,801), a key level separating bull and bear markets. However, no negative factors have yet emerged to cause a significant further decline in Hong Kong stocks. The market is expected to trade within a range in the short term, finding support at the 150-DMA (25,253). Now may be a good time to enter the market, but this depends on risk tolerance.

This week, major central banks such as the Bank of England and the Bank of Japan will hold policy meetings. While the market widely expects the Bank of Japan to raise interest rates, a larger-than-expected increase could trigger a wave of unwinding yen carry trades, dragging down overall market liquidity and impacting stock market performance. Also, attention should be paid to the delayed release of US employment data this week. If the data is significantly worse than expected, it will exacerbate concerns about the overvaluation of US stocks, and this sentiment could potentially spread to Hong Kong stocks.

European stocks fell, with the UK, French, and German stocks declining by 0.68%, 0.23%, and 0.63%, respectively.

U.S. unemployment rose to a four-year high in November, and U.S. stocks traded mixed on Tuesday. The Dow Jones Industrial Average opened 36 points lower and then fluctuated, falling as much as 470 points to a low of 47,946. The S&P 500 fell as much as 0.83%, and the Nasdaq Composite dropped as much as 0.59% before recovering.

At the close, the Dow Jones Industrial Average fell 302 points, or 0.62%, to 48,114; the S&P 500 fell 16 points, or 0.24%, to 6,800, marking its third consecutive day of losses; and the Nasdaq Composite rebounded 54 points, or 0.23%, to 23,111.

The U.S. dollar index fell as much as 0.45% to 97.87; the euro rose as much as 0.44% to $1.1807 before turning negative; the yen rose 0.53% to 154.4 against the dollar. Bitcoin rose as much as 3% to $87,988.