Global stocks slid on Thursday as market sentiment was dampened by the US Federal Reserve holding interest rates steady alongside the escalating Middle East conflict as US Fed chair Jerome Powell warned of meaningful inflation ahead.
The US central bank held interest rates steady on Wednesday, and policymakers signaled borrowing costs are still likely to fall in 2025. However, Powell cautioned against putting too much weight on that view and said he expects "meaningful" inflation ahead as consumers pay more for goods due to US President Donald Trump's planned import tariffs.
In Hong Kong, stocks slumped nearly 500 points to a nearly three-week low.
The benchmark Hang Seng Index closed 472 points or 1.99 percent lower at 23,237, with a main board turnover of HK$220.1 billion. The Hang Seng Tech Index lost 126 points or 2.42 percent to 5,088.
China's largest condiment maker Foshan Haitian Flavouring and Food (3288) edged up 0.55 percent to HK$36.50 after briefly dropping below its offer price of HK$36.30 on its first trading day, with a turnover of HK$2.89 billion.
Cosmetic retailer Sa Sa International (0178) slid 1.6 percent after reporting a 65 percent decline in net profit for the year ended March.
Labubu toy maker Pop Mart (9992) lost 5.3 percent while Beijing-based luxury jeweler Laopu Gold (6181) decreased 6.4 percent.
E-commerce platforms Meituan (3690) and JD.com (9618) both dropped more than 3 percent.
Some oil and gas shares, however, rose amid growing Middle East tensions. JX Energy (3395) jumped 34.6 percent and Sunshine Oilsands (2012) surged 42.6 percent.
In mainland China, the Shanghai Composite Index dropped 26 points to 3,362, while the Shenzhen Component Index slid 123 points to 10,051.
Elsewhere, the Nikkei 225 in Japan lost 1 percent to 38,488. Europe's Stoxx 600 index retreated 0.6 percent a few hours into opening, while the futures for the S&P 500 and the Dow Jones Industrial Average were down 0.46 percent and 0.4 percent.
Hong Kong major local lenders including the Hongkong and Shanghai Banking Corporation said they are keeping the prime rate unchanged.
HSBC and BOC Hong Kong (2388) hold their prime rate at 5.25 percent. Standard Chartered Hong Kong's rate stayed at 5.5 percent.
Hang Seng Bank (0011) also said it holds its rate steady at 5.25 percent.
The city's de-facto central bank the Hong Kong Monetary Authority kept the base rate unchanged at 4.75 percent.
The Hong Kong Monetary Authority said the outlook for the local currency market and interbank rates remains subject to a range of variables, including carry trades, supply and demand dynamics in the Hong Kong dollar driven by capital market activity.
STAFF REPORTER AND REUTERS
