Hong Kong Stocks Advance on China Optimism

The Hang Seng Index climbed 0.4% to close at 24,952 on Friday, outperforming most Asian markets as improving signals from China’s economy supported sentiment. Regional markets remained under pressure after Wall Street losses, as concerns over a prolonged Middle East conflict pushed oil prices higher and lifted global borrowing costs. Uncertainty around US-Iran developments also kept investors cautious. Despite these headwinds, stronger industrial profit growth in China pointed to improving earnings, reinforcing confidence in the recovery. Expectations of further policy support, including possible rate cuts and lower reserve requirements, added to the positive tone. Notable movers included Xiaomi Corporation (2.0%), Kuaishou Technology (1.4%), Shenzhen Xunce Technology (24.1%), Innovent Biologics (7.6%), and Akeso Inc. (1.9%).

The Hang Seng Index fell 0.4% to around 24,753 on Friday, extending losses from the previous session as geopolitical tensions in the Middle East continued to weigh on risk sentiment following a sharp selloff on Wall Street. Investors remained cautious despite President Donald Trump’s decision to extend the deadline for Iran to reach a deal by 10 days, as uncertainty persisted over the conflict’s direction. Sentiment weakened further after reports that the United States is considering deploying up to 10,000 additional troops to the Middle East, raising fears of prolonged instability. Oil prices remained volatile, with Brent crude fluctuating before stabilizing near $107 per barrel, still elevated amid supply disruptions linked to the Strait of Hormuz. The sustained surge in energy prices continued to fuel inflation concerns and dampen global risk appetite. Early losers included Meituan Class B (-0.6%), Tencent Holdings (-0.9%), AIA Group (-3.39%), and Techtronic Industries (-0.9%).

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%).