Hong Kong's Hang Seng index recovered much of its intraday losses during Wednesday's trade, September 9, but still ended the session in negative territory as rising crude oil prices stoked fears of deeper disruptions to energy supplies amid escalating tensions in the Strait of Hormuz.
Extending its losing streak to a third straight session, the index slipped 0.17% to close at 25,274. For the week so far, it has declined 1.47%. Investors' attention has now shifted to upcoming major central bank meetings, including the US Federal Reserve's policy decision, amid concerns over how policymakers could respond to rising energy costs and renewed inflationary pressures.
At the stock level, Hong Kong-listed hotpot chain Haidilao slumped 9% after Bloomberg reported that its co-founder was selling 259 million shares through a family trust holding vehicle. Meanwhile, Lenovo rose 2.1%, MiniMax gained 1.9%, and Kingboard Laminates advanced 3.3%.
The sharp rise in energy costs, driven by supply risks stemming from the Middle East conflict, is also making analysts increasingly cautious about the outlook for China. BofA Securities lowered its growth forecasts for China to 4.2% for 2027 and 4.0% for 2028, while retaining its 2026 growth forecast at 4.5%, Reuters reported.
The impact of higher costs is also beginning to show up in economic data. China's factory-gate inflation gathered pace in August, while consumer price growth accelerated, even as underlying domestic demand remained subdued.