Why did HSI today fall 2.23%?

The decline came from three pressures hitting at once. Reports of a Kevin Warsh Fed raised rate and liquidity worries. A steep slump in gold and silver hurt risk appetite. AI bubble concerns triggered profit taking in tech and other high beta names. Together, those drivers pushed the Hang Seng Index lower.

How could a Kevin Warsh Fed affect Hong Kong stocks?

If markets expect tighter US policy and a faster balance sheet run-off, yields and the dollar can rise. With the HKD peg, higher global funding costs usually weigh on local equities. That pressure tends to hit valuation-sensitive tech and China cyclicals first, while defensives and high-quality cash flow names may hold up better.

What should Hong Kong investors watch after the metals rout?

Focus on gold and silver pricing, oil trends, and their link to liquidity appetite. Also track US Treasury yields and the US dollar, which influence funding conditions. If metals and yields stabilize together, risk assets often find support. Persistent weakness suggests staying cautious with tighter stops and smaller positions.

Which sectors were most affected in today’s Asian stocks selloff?

Tech and other growth areas led declines due to AI bubble worries and valuation sensitivity. China-exposed financials and property also softened as funding and policy concerns resurfaced. Defensives like utilities and telecoms fell less but still faced selling as correlations increased during broad de-risking across the region.

Global Market Insights

^HSI Today, February 3: 2.23% Slide on Warsh Fed Pick, Metals Rout

ByDanny Kontos February 3, 2026

HSI today dropped 2.23% to 26,775 as the Hang Seng Index led an Asian stocks selloff. Reports that President Trump plans to nominate Kevin Warsh to lead the Fed raised rate worries, while a sharp slide in gold and silver deepened risk aversion. AI bubble jitters added pressure to growth names. We explain the drivers, highlight sector impact, and outline what Hong Kong investors should watch into the US session and the rest of the week.