Hong Kong shares retreated from some of yesterday’s gains while most Asian shares extended gains on Thursday amid intensified investor optimism over the upcoming US Federal Reserve interest rate cut.
The benchmark Hang Seng Index opened lower and rebounded, before closing 113 points, or 0.43 percent lower to 26,086.
The Hang Seng Tech index dropped 0.24 percent to 5,888 points.
The full-day main board turnover reached HK$325.2 billion.
Apple supplier Sunny Optical Technology (2382) and BYD Electronic (0285) increased 0.92 percent and 1.29 percent, respectively.
Alibaba (9988) edged up by 0.35 percent and Tencent (0700) dropped 0.63 percent.
Semiconductor Manufacturing International Corporation (0981) and Hua Hong Semiconductor (1347) marched 5 percent and 4.6 percent, respectively.
In mainland China, the Shanghai Composite Index gained 1.65 percent to 3,875 points while the Shenzhen Component Index rose 3.36 percent to 12,979.
Elsewhere in Asia, South Korea's Kospi scaled a record peak, gaining 0.9 percent while Japan's Nikkei also climbed to an all-time high of 44,372, echoing an overnight Wall Street rally.
Investor sentiment was buoyed by a surprise drop in US producer prices, reinforcing expectations of a Fed rate cut next week. Traders are now pricing in a 92 percent chance of a 25-basis-point cut, with an 8 percent probability of a larger 50-bp move, according to CME Group's FedWatch tool.
STAFF REPORTER AND REUTERS
