HK Shares Reverse From Losses

The Hang Seng Index in Hong Kong rebounded thanks to auto and handset equipment shares, while other markets in the region headed in different directions, after the US Federal Reserve surprised traders by indicating that it could taper its loose monetary policy earlier than expected.

The local benchmark started lower after the Fed sounded more hawkish than expected, and fell as many as 220 points. It climbed into positive territory before lunch but failed to hold its ground in the afternoon, before making another successful recovery attempt to finish at its highest point for the day, at 28,558, up 121 points, or 0.4 percent.

Market turnover was HK$140.25 billion.

Leading the gainers on the benchmark was BYD Company, which soared 8.3 percent. Another mainland carmaker, Geely Auto, also outperformed, jumping nearly three percent.

Sunny Optical surged 7.7 percent, after the handset equipment maker forecast the auto camera market to grow by 10 percent this year. AAC Technology gained six percent.

The biggest blue-chip loser was Haidilao. The hotpot chain slumped 3.7 percent.

Across the border, the Shanghai Composite index rose 0.2 percent, while the blue-chip CSI300 index put on 0.4 percent. The Shenzhen Composite added 1.2 percent.

In Japan, the Nikkei slipped one percent. South Korea and Australia each gave up 0.4 percent. Singapore was fractionally lower. But Taiwan inched up 0.5 percent.

In currencies, the US dollar strengthened after a majority of Fed officials said they see at least two interest rate hikes for 2023.