Hang Seng Marks Third Weekly Fall on Global Risks

The Hang Seng fell 223 points, or 0.9%, to end at 25,277 on Friday, extending losses for the second session as most sectors dropped. Sentiment remained cautious after global central bankers warned the Middle East war could reignite inflation, while the IMF noted the impact depends on its duration and intensity. Tech and consumers posted steep declines, with property also weaker. Weekly, the index logged a third straight drop, down 0.7%, amid worries that China may delay new support measures until growth shows deeper strain. The PBoC held key lending rates at record lows for a tenth month in March, even as surging oil prices from the Iran conflict put Beijing on track to exit deflation earlier than expected. Still, losses were offset by data showing China's youth jobless rate hit an 8-month low in February. Xiaomi slipped 7.8%, followed by SMIC (-4.9%), China Unicom (-4.5%), and Sunny Optical (-3.5%). Traders now await Hong Kong’s February inflation and Q4 current account later today.

Equities in Hong Kong fell 111 points, or 0.4%, to 25,392 in early Friday trade, extending losses from the previous session as weakness in tech and consumer stocks weighed on the market. Sentiment remained fragile after a negative lead from Wall Street overnight, with oil price volatility curbing expectations for Fed rate cuts. On the policy front, China’s central bank left its key lending rates unchanged at record lows for a tenth straight month in March 2026, in a cautious move as Middle East tensions may cloud the inflation outlook. Meanwhile, Beijing’s 2026 growth target of 4.5%–5%, its weakest since 1991, suggests less urgency for broad stimulus. Markets are now on track for a third straight weekly loss, down about 0.3% so far. Concerns over Hong Kong’s IPO pipeline, amid Beijing's tighter scrutiny of offshore-incorporated Chinese firms, added pressure. Among notable laggards were Xiaomi Corp. (-6.4%), Laopu Gold (-4.2%), China Unicom (-2.7%), and SITC Intl. Holdings (-2.3%).

The Hang Seng tumbled 525 points, or 2.0%, to end at 25,500 on Thursday, ending a three-day advance as fears of a prolonged Middle East conflict fueled stagflation concerns. Energy infrastructure strikes kept crude prices elevated, unsettling global markets. Meanwhile, Beijing’s tighter scrutiny of offshore-incorporated Chinese firms seeking Hong Kong listings clouded the city’s IPO outlook. Mainland shares also slid to their lowest since early January. Losses were partly cushioned by expectations that the PBoC will keep lending rates at record lows for a 10th straight month, with the March fixing due Friday. All Hong Kong sectors fell, led by property, financials, and tech. Notable laggards included Knowledge Atlas (-12.5%), Tencent (-7.0%), and China Hongqiao Group (-6.3%). Gold miners also retreated sharply after bullion slipped below USD 5,000 per ounce for the first time in a month, with Zijin Gold Intl. (-9.5%), Zhaojin Mining (-8.6%), and Laopu Gold (-5.5%) among the worst hit.