Hang Seng Falls to Near 2-Week Low as Super Typhoon Nears

The Hang Seng Index slipped 335 points, or 1.3%, to close at 25,777 on Thursday, as cautious sentiment prevailed despite support from gains in tech heavyweights and insurers in the previous session. Investor confidence remained restrained by a continued rise in oil prices, which extended their rally for a fourth consecutive session amid escalating tensions in the Middle East and ongoing disruptions in the Strait of Hormuz. The surge in energy costs heightened concerns over inflation and its potential impact on global growth, weighing on risk appetite. Confidence was further dampened after the Federal Reserve highlighted inflation risks despite not adjusting interest rates. Across the region, tech stocks declined as early optimism over artificial intelligence faded, with selling pressure increasing due to higher oil prices and geopolitical concerns. Major decliners included Tencent Holdings (-2.4%), Xiaomi (-3.7%), HKEX (-1.8%), China Hongqiao (-4.7%), and Kingboard Laminates (-7.5%).

The Hang Seng Index rose 432 points, or 1.68%, to close at 26,112 on Wednesday, rebounding from the previous session’s losses as investors stepped in to buy stocks after recent declines. Sentiment was supported by selective buying in heavyweight banking and technology stocks, though broader risk appetite remained cautious. Regional markets opened lower, tracking a tech-led selloff on Wall Street amid concerns over returns from heavy AI investment ahead of megacap earnings. External cues were mixed, with oil prices holding gains as traders monitored Iran peace talks, while concerns over the Strait of Hormuz kept energy supply risks in focus. Despite the rebound in Hong Kong equities, investors remained wary amid geopolitical tensions and market volatility. Notable gainers included Tencent Holdings (1.1%), Xiaomi Corporation (0.7%), Meituan Class (3.6%), AIA Group (2.2%), and Hong Kong Exchanges & Clearing (3.0%).

The Hang Seng Index fell 246 points, or 0.95%, to close at 25,680 on Tuesday, as sentiment remained cautious amid persistent geopolitical tensions and mixed external cues. Oil prices held recent gains as the US weighed a proposal from Iran while the Strait of Hormuz remained largely constrained, keeping concerns over global supply disruptions and inflationary pressures in focus. Across the region, Asian markets traded near recent highs but showed limited direction, with investors staying sidelined ahead of key technology earnings and upcoming central bank decisions. The uncertain backdrop capped risk appetite in Hong Kong, preventing any sustained upward momentum. On the corporate side, the Hong Kong stock of CATL slipped 6.9% after the electric vehicle battery giant completed a $5 billion share sale, with the issuance priced below market at a 7% discount to the last closing price. Notable laggards included Tencent Holdings (-1%), SMIC (-3.2%), and Xiaomi Corporation (-3.8%).