The Hong Kong stock market snapped a three-day winning streak on Wednesday, ending a rally that had lifted the index by almost 1,100 points or 4.2 percent.
The Hang Seng Index closed just beneath the 26,460-point plateau, and analysts expect the market to extend its losses heading into Thursday’s session.
The global forecast for Asian markets remains weak, with traders widely expected to lock in gains as several markets sit at or near record highs.
European and U.S. markets closed mostly in the red on Wednesday, and Asian bourses are expected to follow that downward lead.
The Hang Seng finished modestly lower on Wednesday, pressured by losses in financial shares and technology stocks, while the property sector produced a mixed performance.
The index dropped 251.50 points or 0.94 percent to finish at 26,458.95, after trading between 26,313.51 and 26,616.94 throughout the session.
WuXi Biologics was the standout performer among active stocks, surging 5.92 percent, while Techtronic Industries also posted a solid gain of 1.91 percent.
On the downside, Li Auto stumbled 1.69 percent, Xiaomi Corporation surrendered 1.55 percent, and Meituan retreated 1.51 percent during Wednesday’s session.
JD.com slumped 1.30 percent, Lenovo contracted 1.17 percent, and Industrial and Commercial Bank of China skidded 1.13 percent as selling pressure weighed on major names.
Haier Smart Home bucked the trend with a gain of 1.10 percent, Henderson Land added 0.56 percent, and New World Development gained 0.55 percent.
The lead from Wall Street was soft, as major averages opened slightly higher on Wednesday before a late-session slump left them closing in mixed territory.
Choppy trading on Wall Street came as investors paused to assess recent market strength, which had lifted the Dow and the S&P 500 to new record closing highs.
With global sentiment fragile and profit-taking likely to continue, Hong Kong traders face a challenging Thursday open as risk appetite remains cautious across the region.
