Hong Kong Stocks Drop Nearly 2%

The Hang Seng Index plunged about 1.9% to close at 24,856 on Thursday, giving back gains from the previous session, as conflicting signals on US-Iran developments unsettled markets. Washington suggested progress toward ending the conflict, while Tehran indicated it was only reviewing proposals and not engaging in direct talks. This uncertainty, alongside rising oil prices, reinforced a risk-off tone and extended foreign outflows from Asian equities. Technology stocks led the downturn, with the Hang Seng Tech Index falling around 2.2%, including Kuaishou Technology, which slumped about 13%. Other major laggards included Pop Mart International (-10.5%), Tencent Holdings (-2.0%), Meituan Class B (-3.7%), and Xiaomi Corporation (-0.3%).

The Hang Seng Index fell 1.0% to around 25,071 on Thursday, extending losses as the recent relief rally lost momentum and investors turned cautious after a two-day advance. Sentiment stayed fragile as investors weighed mixed signals on U.S.-Iran talks. Optimism over possible de-escalation contrasted with ongoing uncertainty, even as global equities found some support. Regional caution persisted despite overnight gains on Wall Street. At the same time, foreign outflows from Asian equities, elevated bond yields, and concerns over a potential energy shock continued to weigh, while slowing growth capped upside. Notable laggards included Tencent Holdings (-0.89%), Kuaishou Technology (-9.71%), Meitu Inc. (-0.84%), and Pop Mart International (-1.49%).

The Hang Seng Index rose 1.1% to close 25,336 on Wednesday trading, marking a second straight session of gains, supported by easing oil prices and a pause in immediate geopolitical escalation that helped stabilize risk sentiment. Investors reassessed earlier concerns over a potential energy shock, after surging crude prices and rising global bond yields had triggered heavy foreign outflows from Asian equities and pressured valuations across the region. Despite the uptick, investors remained cautious, with lingering concerns over liquidity, growth momentum, and the risk of renewed oil spikes likely to keep markets volatile in the near term. All stock sectors traded in the green, except for energy minerals, communications and consumer services. Notable movers included Meituan Class B (+13.92%), Semiconductor Manufacturing (+2.36%), and AIA Group Limited (+2.00%). In contrast, Pop Mart International (-22.51%) and Tencent Holdings (-1.65%) declined.