Alibaba, Nio Stocks Fall As Hong Kong Investors Turn Cautious Ahead Of Fed Meet

Hong Kong stocks opened lower on Wednesday morning as all eyes turned toward the Federal Reserve’s policy announcement later in the day. 

The benchmark Hang Seng fell 0.8% and Xpeng shares fell over 8%, while Nio shares lost over 6%. Alibaba shares lost over 2%.

“Early strength in U.S. equities reversed quickly following the release of the stronger-than-expected U.S. September JOLTS data, which tempered expectations about the much sought after Fed ‘pivot’. Markets remain fragile and are unlikely to have any real conviction until the FOMC announcement tomorrow. With a 75 bps hike fully priced in, the focus is on Chairman Powell’s press conference and any guidance on the magnitude of future policy moves,” ANZ Research said in a note.

Also Read: Best Penny Stocks

Macro News: China has displayed no interest in discussing steps to scale back the risk posed by nuclear weapons, reported Reuters, citing senior U.S. officials.

Hong Kong chief executive John Lee has urged banks to "get in front" of the queue for business as Hong Kong commences the Global Financial Leaders’ Investment Summit, reported the South China Morning Post.

Company News: Apple Inc AAPL supplier Foxconn Technology Co Ltd FXCOF said on Tuesday it quadrupled bonuses on offer for workers at its Zhengzhou plant, reported Reuters.

XPeng’s G9 has received a permit to conduct autonomous driving public road testing in Guangzhou, reported CnEVpost.

Top Gainers and Losers: Hang Lung Properties Limited and Lenovo Group Limited are the top losers among Hang Seng constituents, having shed over 5% and 3%, respectively. CSPC Pharmaceutical Group Limited and Galaxy Entertainment Group Limited are the top gainers, having risen over 1%.

Global News: U.S. futures traded in the green on Wednesday morning Asia session. The Dow Jones futures were up 0.16%, while the Nasdaq futures gained 0.31%. The S&P 500 futures were trading higher by 0.23%.

Elsewhere in Asia-Pacific, Australia’s ASX 200 was up 0.33%. Japan’s Nikkei 225 traded flat, while China’s Shanghai Composite index fell 0.12%. South Korea’s Kospi gained 0.02%.

Read Next: Tesla, Amazon, AMD, Google, Proshares UltraPro QQQ: Cybertruck, Earnings And Other Buzz Pull Retail Investors