HONG KONG—Hong Kong's key stock index dipped 0.6 percent Wednesday as traders took profit after a three-day winning streak.
Traders said the benchmark index may slide further after the U.S. Federal Reserve announces its decision on its key interest rate. But they added that Hong Kong stocks will likely be well supported by the robust domestic economy in the medium term.
The blue-chip Hang Seng Index fell 158.80 points, or 0.6 percent, to 25,755.35 after rising 1.6 percent over the past three days.
China Mobile fell 1.4 percent to HK$134.10. PetroChina dropped 0.9 percent to HK$11.60.
"We are worried sell-offs will emerge after the rate meeting and the release of economic figures," said ICEA Securities analyst Ernie Hon. "The U.S. market is vulnerable to unfavorable news, as macro conditions such as property and job markets haven't improved."
The Fed was widely expected to say later in the day it will cut its key rate by a quarter point. On Wednesday, the U.S. was also due to disclose GDP growth for the first quarter, which was expected to be slower than the fourth quarter of last year.
Bank HSBC rose 0.5 percent to HK$135.10.
Goldman Sachs upgraded the stock to "buy" from "sell," saying subprime-related losses and provisions will likely decline after the first quarter, while revenue growth from emerging markets will remain strong.
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