Hong Kong stocks drop ahead of Fed meeting

Hong Kong stocks fell from their recent three-year high ahead of a key Federal Reserve meeting and Tencent's earnings report. The Hang Seng Index declined by 0.2 percent to 24,680.40 points, while the Hang Seng Tech Index dropped 1.5 percent. In mainland China, both the CSI 300 Index and the Shanghai Composite Index fell by 0.3 percent. Baidu, a major search engine, saw its shares fall by 4.5 percent, trading at HK$98.70. Electric vehicle maker Li Auto's stock decreased by 3.7 percent to HK$108.20. China Unicom also struggled, sinking 2.3 percent to HK$9.37 after its full-year earnings disappointed investors. Tencent, expected to report a 62 percent rise in fourth-quarter profit later today, dipped 0.3 percent to HK$539.50. Investor caution increased as U.S. stocks recently snapped a rebound ahead of the Fed meeting. While the Fed is likely to keep interest rates steady, market watchers are eager to hear its views on the economy and upcoming tariff policies. Managing inflation without causing a recession is a challenging task for the Fed. In broader Asia-Pacific markets, Japan's Nikkei 225 rose by 0.5 percent, and South Korea's Kospi gained 0.8 percent. However, Australia's S&P/ASX 200 saw a slight decrease of 0.1 percent.