Hong Kong stocks traded sideways on Thursday, with technology stocks falling amid fears of an artificial intelligence bubble. The Hang Seng Index inched up 0.1%, while the Hang Seng Tech Index dropped 0.7%. Xiaomi and Alibaba saw declines, while China Petroleum and Chemical Corp rallied 6.5%.

Investors are watching US November inflation data, which could influence Federal Reserve interest rate decisions. The Bank of Japan is expected to raise borrowing costs by a quarter point, potentially impacting global financial markets. China International Capital Corp surged 3.6% after revealing a brokerage absorption plan.

The Hang Seng Index is projected to end 2026 at 29,500, a 15% gain, driven by reduced geopolitical risk, Fed rate cuts, and earnings recovery. Other Asian markets saw declines, with Japan’s Nikkei 225 dropping 1% and South Korea’s Kospi falling 1.5%. Stay informed with SCMP’s curated content on global trends and topics.

Read more at Yahoo Finance: Hong Kong stocks tread water as tech giants stumble on AI bubble jitters