Stocks in Hong Kong Hit 7-week Low

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%).

The Hang Seng Index slipped 91 points, or 0.4%, to close at 24,566 on Tuesday, extending losses for a fifth straight session and hovering near its lowest level since late March. Sentiment remained fragile despite reports that tensions in the Middle East eased following a halt in hostilities between Israel and Iran and as optimism surrounding AI-related stocks improved. Finance, retail trade and energy minerals posted losses while selected technology stocks gained. Notable decliners included AIA (-2.2%), Pop Mart (-1.4%), Knowledge Atlas Technology (-12.8%), and Xiaomi (-0.7%). In contrast, Tencent advanced 1.8% and Semiconductor Manufacturing International Corporation gained 3.2%, helping the benchmark recover from earlier losses. Investors remained cautious over the broader pace of China's economic recovery despite stronger-than-expected Chinese trade data, with both exports and imports exceeding forecasts on solid demand for technology hardware amid rising global AI investment.