Hong Kong Stocks Poised for Lower Open as Wall Street Selloff, Global Growth Fears Weigh

Hong Kong's Hang Seng Index is expected to open lower on Wednesday, extending a two-session slide that has shaved nearly 340 points, or 2 percent, and left the benchmark just above the 17,650-point mark. The negative lead comes as global markets turn broadly risk-off on concerns over the world economy. The Hang Seng closed down 40.48 points, or 0.23 percent, at 17,651.49 on Tuesday after trading between 17,583.70 and 17,725.51. Financials dragged, with Industrial and Commercial Bank of China down 2.06 percent and China Life Insurance off 0.51 percent, while technology and property names were mixed. Meituan gained 2.24 percent and Haier Smart Home rose 2.76 percent. The selloff followed a brutal U.S. session. The Dow plunged 626.15 points, or 1.51 percent, to 40,836.93; the NASDAQ plummeted 577.33 points, or 3.26 percent, to 17,136.30; and the S&P 500 tumbled 119.47 points, or 2.12 percent, to 5,528.93. U.S. manufacturing activity continued to contract in August and construction spending unexpectedly fell in July. Traders are also weighing the pace of Federal Reserve rate cuts, with CME FedWatch showing a 63.0 percent chance of a quarter-point reduction this month and a 37.0 percent chance of a half-point cut. Oil fell to a nine-month low, with WTI crude down $3.21, or 4.4 percent, at $70.34 a barrel.