Hong Kong equities ended broadly flat, with strength from Wall Street offset by reduced expectations for imminent U.S. policy easing.

The Hang Seng Index ended Wednesday's half-day holiday session little changed at 25,818.93, while the Hang Seng China Enterprises Index barely moved in positive territory to finish at 8,915.12.

Overnight in the U.S., the S&P 500 rose for a fourth straight session, closing 0.5% higher, while the Nasdaq advanced 0.6%, supported by improving risk appetite ahead of the Christmas holiday.

Markets are pricing in an 87% probability that the Federal Reserve will hold rates steady at its January meeting, according to LSEG estimates cited by Reuters.

U.S. rate futures now suggest the next easing move is expected in June, with two quarter-point cuts priced in for 2026, the report said.

Hong Kong's stock market will remain closed on Thursday and Friday for the Christmas holiday, and reopen on Monday, Dec. 29.

In corporate news, Playmates Toys (HKG:0869) closed 15% lower after its unit was notified that its Teenage Mutant Ninja Turtles licensing agreement with Viacom Media Networks will not be renewed beyond Dec. 31, 2026.