Hang Seng closes 0.59 percent lower at 22,958.65 points

The Hang Seng Index ended the Hong Kong trading session on Thursday, October 29, at 22,958.65 points, down 0.59 percent. The benchmark surrendered its early resilience as technology shares weakened, leaving the index below the 23,000-point mark at the close.

According to Xinhua, the Hang Seng Tech Index fell 2.84 percent to 3,744.14 points, while the Hang Seng China Enterprises Index lost 0.46 percent to 7,755.66 points. The figures point to a sharper setback in the technology segment than in the broader benchmark.

Technology shares lead the retreat

RTHK reported that a deepening technology selloff overshadowed the US Federal Reserve's decision to keep interest rates unchanged. Regional investors were also weighing mixed technology earnings and the outlook for large AI-related investments. RTHK cited UBS strategist James Wang, who said valuations for AI hardware names were close to historical trough levels while investor sentiment remained fragile.

The session's weakness was concentrated in the technology complex, while other parts of the market proved more resilient. RTHK reported turnover of HK$189.45 billion, giving the decline a substantial trading backdrop, although the index result alone does not establish a direct causal link between turnover and the market move.

Rate decision remains a market input

The Federal Reserve kept rates steady on Wednesday, as expected, while indicating that further inflation data would be needed before determining the next policy step. For Hong Kong equities, the combination of unchanged US rates and renewed scrutiny of technology earnings leaves monetary policy and the profitability of AI investment as key inputs for the next session. The Hang Seng's close therefore reflects both a broad regional technology pullback and continued sensitivity to the US rate outlook.

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