China and Hong Kong Stock Markets Weaken as Investors Await Fed Decision

JAKARTA, KOMPAS.com — The Chinese and Hong Kong stock markets weakened on Wednesday (18/3/2026). Investors were cautious ahead of the US Federal Reserve’s interest rate decision. Uncertainty stemming from the Middle East conflict also pressured market sentiment. China’s benchmark CSI300 index fell 0.3% during the midday trading break. The Shanghai Composite Index weakened by 0.4%. Hong Kong’s Hang Seng Index dropped 0.17%. Energy sector shares also declined by 2.1%. The drop in Hong Kong was triggered by a plunge in Tencent Music shares by up to 23%, which pressured the Hang Seng Tech Index to fall 0.8%. Market participants are awaiting the Federal Reserve’s interest rate decision announced on the same day. The market expects the US central bank to hold rates steady. Investors are watching the future policy direction, particularly regarding inflation and the impact of geopolitical conflicts. China has a high dependence on energy imports from that region, including oil from Iran. Analysts at Nanhua Futures assess that investors are more alert to external risks. “Investors are closely monitoring oil prices and are wary of market risks arising from changes in Federal Reserve policy or unexpected events in the war,” the analysts wrote in their note.