Hong Kong Stocks Post Biggest Monthly Loss in 2 Years

The Hang Seng Index edged up 0.2% to close at 24,788 on Tuesday but logged its largest monthly decline in more than two years. Sentiment remained fragile as escalating Middle East tensions continued to weigh on global markets, driving oil prices higher and fueling concerns over inflation and economic growth. Elevated bond yields and a stronger US dollar further pressured equities, limiting any meaningful rebound. Other equities in the region also struggled for direction amid heightened uncertainty. Notable movers included Tencent Holdings (+0.5%), Hong Kong Exchanges and Clearing (+1.6%), Kuaishou Technology (+0.2%), Wuxi Biologics (+5.3%), and J&T Global Express (+11.3%). Despite the day’s modest gains, the index shed 6.9% in March, marking its second consecutive monthly loss and its worst monthly performance since October 2024.

The Hang Seng Index climbed 0.3% to around 24,817 on Tuesday, rebounding from the previous session as gains in technology and consumer stocks lifted the broader market. The advance came despite persistent Middle East tensions, with investors engaging in bargain hunting after recent declines. Support also came from the relative resilience of Chinese equities, which have outperformed global peers since the Iran conflict began. Stability in domestic conditions, easing deflation pressures, and strength in renewable energy sectors helped improve sentiment, alongside more constructive views from global banks. The rebound tracked a modest recovery across regional markets, even as elevated crude prices and a stronger US dollar continued to weigh. Notable gainers included Zijin Mining (+3.5%), China Hongqiao (+3.7%), Akeso (+5.3%), Shenzhen Xunce Technology (+8.3%), and Geely Automobile (+0.8%).

The Hang Seng Index fell 0.8% to close at 24,751 on Monday, paring steeper losses earlier in the session, as gains in energy offset some of the declines in technology and consumer stocks. Still, sentiment remained weak among Asian markets amid escalating Middle East tensions, with reports that Iran-aligned Houthi forces in Yemen had entered the conflict. Brent crude is also heading for a record monthly surge, raising concerns over inflation and global growth, further weighing on sentiment. Across the course, BYD Company dropped 4.9% after reporting its first annual profit decline in four years, pressured by weaker domestic demand and forex losses. Other notable laggards included Tencent Holdings (-2.4%), Pop Mart International (-0.6%), Meituan Class (-2.0%), Xiaomi (-1.9%), and SMIC (-2.1%). In contrast, PetroChina rose 2.8% on elevated oil prices and expectations of stronger earnings, reaching a multi-week high.