Hong Kong equities fell as trading resumed following the three-day Lunar New Year holiday, with investors returning to a market shaped by mixed global signals and renewed caution over interest rate expectations.

The Hang Seng Index opened lower and extended losses through the session, reflecting weakness in technology and property shares.

Traders pointed to subdued sentiment in mainland Chinese markets and lingering concerns over global monetary policy as contributing factors behind the pullback.

Technology counters were among the notable laggards, mirroring recent volatility in international tech benchmarks.

Property developers also faced pressure, as investors reassessed the pace of recovery in Hong Kong’s real estate sector amid still-elevated borrowing costs and uneven demand conditions.

Market participants said trading volumes were relatively moderate as investors recalibrated positions after the holiday pause.

Developments during the break, including overseas economic data releases and shifts in U.S. Treasury yields, influenced early positioning in Asian markets.

Analysts noted that while short-term fluctuations are common after extended market closures, broader direction will likely depend on corporate earnings updates, mainland economic indicators and signals from major central banks.

Attention is also turning to upcoming policy meetings and data releases that could shape expectations for the global interest rate cycle.

Despite the day’s decline, some strategists maintain that valuations in select sectors remain attractive compared with historical averages, particularly if macroeconomic conditions stabilise in the months ahead.

For now, however, the reopening session underscored the cautious tone prevailing across regional markets as the Lunar New Year trading period begins.