Hong Kong Stock Slips on Rising Oil Prices

The Hang Seng Index slipped 256 points, or 1.0%, to 25,600 on Monday, reversing gains from last week’s rally as escalating geopolitical tensions in the Middle East fueled a sharp rise in oil prices and dampened global risk sentiment. Markets came under pressure as investors weighed renewed supply risks following instability around key energy routes, prompting a broad risk-off move across Asia. The benchmark also tracked weaker regional cues, with US futures pointing lower amid heightened volatility in global energy markets. Losses were partly offset by gains in energy minerals, producer manufacturing, and process industries. However, weakness in heavyweight tech and brokerage stocks weighed on the index amid broader risk aversion and inflation concerns. Notable laggards included Tencent Holdings (-1.3%), Mirxes Holding Company (-20.2%), Xiaomi Corporation (-1.9%), Semiconductor Manufacturing International (-2.2%), and Guotai Junan International (-6.8%).

The Hang Seng Index rose 117 points, or 0.6%, to close at 25,893 on Friday, recovering from a brief pullback in the previous session as Hong Kong equities advanced on signs that persistent industrial deflation in China may be easing. Sentiment improved after data indicated a turnaround in factory-gate pricing pressures, with investors viewing the shift as a potential inflection point for corporate earnings and broader economic growth. However, the fragile US-Iran ceasefire came under renewed strain as both sides traded accusations over breaches of commitments, including issues around the Strait of Hormuz, while Israeli strikes in Lebanon further heightened geopolitical tensions ahead of upcoming talks in Pakistan. Most sectors advanced, led by financial and technology stocks. Notable gainers included Semiconductor Manufacturing (4.6%), Guotai Junan International (27.7%), Deepexi Technology (48.8%), Shenzhen Xunce Technology (7.6%), and Geely Automobile Holdings (2.5%).

The Hang Seng Index climbed 269 points, or 1.1%, to 26,032 on Friday, bouncing after a brief pullback in the previous session as renewed Middle East de-escalation sentiment following reports that Israel signaled openness to negotiations with Lebanon helped restore risk appetite. The rebound was driven by broad-based buying across major sectors, with technology and financial stocks leading gains as investors rotated back into risk assets. However, sentiment remained fragile amid concerns over the Strait of Hormuz and wider regional tensions, which continued to influence oil prices and global risk appetite. Traders stayed cautious, warning that any escalation could quickly reverse recent equity gains and tighten financial conditions across Asia. Notable movers included Tencent Holdings (0.3%), H World Group (+0.2%), Shenzhen Xunlei Technology (+9.8%), Semiconductor Manufacturing International Corporation (+3.9%), and Xiaomi Corporation (+1.2%).