Hang Seng Slips 3% This Week

The Hang Seng Index rose 1.9% or 469 points to close at 24,718 on Friday, recovering from losses that pushed the benchmark to an 11-month low in the previous session, as improving global risk sentiment lifted equities across the region. Investor confidence strengthened after US President Donald Trump said negotiations with Iran had made significant progress, raising hopes that a peace agreement could be reached as soon as this weekend. The prospect of easing geopolitical tensions boosted appetite for risk assets globally. Meanwhile, oil prices fell to two-month lows as concerns over potential supply disruptions eased, supporting sectors sensitive to fuel costs. Heavyweight financial, technology, and retail trade stocks led the gains, while the communication sector was the only segment to post a modest decline. Among individual stocks, Tencent (+1.4%), AIA (+1.1%), Pop Mart (+2.6%), Xiaomi (+1.4%), and Knowledge Atlas (+3.4%) were the top performers.

The Hang Seng Index fell 159 points, or 0.7%, to close at 24,249 on Thursday, extending losses for a seventh consecutive session and marking its lowest level since July 2025, as a renewed selloff in technology shares and escalating tensions in the Middle East continued to weigh on investor sentiment. Geopolitical risks also kept investors cautious after the US launched fresh strikes on multiple targets in Iran for a second consecutive day. President Donald Trump accused Tehran of delaying negotiations on an interim peace agreement, while Iran responded by announcing a halt to vessel traffic through the Strait of Hormuz. Technology stocks led the decline, mirroring a broader global selloff in the sector. Market concerns were further amplified by reports highlighting persistent weakness in major Chinese tech shares. Among the notable laggards were Tencent (-1.8%), Lenovo (-0.5%), HKEX (-2.4%), and Xiaomi (-1.8%), and Meituan (-1.1%).

The Hang Seng Index fell 158 points, or 0.6%, to close at 24,408 on Wednesday, extending losses for a sixth consecutive session and remained its lowest level since late March. Investor sentiment remained fragile amid escalating tensions in the Middle East and a renewed selloff in selected technology shares. Markets were pressured after reports that US forces launched fresh strikes against Iran following the downing of an American helicopter, raising concerns about broader regional instability and threatening a fragile ceasefire. Oil prices also rebounded on fears of potential supply disruptions. Meanwhile, investors assessed China's latest inflation data, which showed annual consumer price growth held steady at 1.2% in May, unchanged from April, reinforcing expectations that policymakers may continue implementing measures to aid economic recovery. Among the biggest decliners were SMIC (-3.7%), Xiaomi (-3.2%), Lenovo (-9.5%), Kingboard Laminates (-3.2%), and AIA (-1.3%).