Published on 06/19/2025 at 04:47
(MT Newswires) -- Hong Kong stocks dropped sharply on Thursday after US Federal Reserve Chair Jerome Powell warned of "meaningful" inflation ahead, and investors grew concerned about potential US involvement in the Israel-Iran conflict.
The Hang Seng Index lost 472.95 points, or 2.0%, to close at 23,237.74, while the Hang Seng China Enterprises Index fell 183.25 points, or 2.1%, to 8,410.94.
The US central bank left interest rates unchanged on Wednesday and penciled in two cuts by the end of 2025.
While the Fed expects two rate reductions in 2025, it trimmed its growth forecast and raised its inflation estimates. In new economic projections released alongside the Fed's statement, policymakers sketched a modestly stagflationary picture of the economy.
"Increases in tariffs this year are likely to push up prices and weigh on economic activity," Powell said. "This is something we know is coming; we just do not know the size of it."
Sentiment further soured after Bloomberg reported that senior US officials are preparing for a potential strike on Iran in the coming days.
In corporate news, Haitian Flavouring and Foodmade its trading debut in Hong Kong and closed 0.6% higher at HK$36.50, compared with its offer price of HK$36.30.

Sumber : MT Newswires