Hong Kong Stocks Edge Lower on Cautious Sentiment

The Hang Seng Index fell 202 points, or 0.8%, to 25,950 on Thursday, reversing gains from the previous session as investors locked in profits and adopted a more cautious stance ahead of key macroeconomic data. Sentiment was shaped by a mixed global backdrop. While US equities were supported by strong corporate earnings and improved risk appetite, regional markets remained more restrained as investors weighed geopolitical uncertainty linked to the US-Iran standoff and its potential impact on energy flows through the Strait of Hormuz. Elevated oil prices continued to fuel inflation concerns, keeping risk sentiment in check across Asian markets. Locally, attention is focused on Hong Kong’s March inflation data due later in the session, which could offer fresh signals on price pressures and influence expectations for monetary conditions. Among notable laggards were Tencent Holdings (-1.3%), AIA Group (-1.1%), Geely Automobile (-3.2%), Xiaomi Corporation (-1.5%), and Anta Sports (-1.1%).

The Hang Seng Index fell 324 points, or 1.2%, to close at 26,163 on Wednesday, snapping a two-session winning streak as investors turned cautious amid a mixed global backdrop. The extension of the US-Iran truce provided limited relief but did not fully ease uncertainty, with stalled talks and continued disruption to key oil shipping routes keeping risk sentiment subdued. Rising oil prices added inflation concerns, while global cues were uneven. In Hong Kong, CATL dropped 4.2% after a major shareholder sold a large block via an accelerated placement at a discount, triggering profit-taking and weighing on EV and tech sentiment. China Unicom fell about 2.4% after weaker-than-expected earnings, with profit and revenue declines sparking a sharp selloff. Major laggards included Tencent Holdings (-2.9%), SMIC (-1.3%), Meituan Class (-2.5%), Xiaomi (-1.9%), Pop Mart (-2.6%). Investors also awaited inflation data due tomorrow for signals on interest rates and global monetary policy direction.

The Hang Seng Index rose 126 points, or 0.5%, to close at 26,487 on Tuesday, extending gains for a second session as sentiment improved on signs of possible diplomatic progress in the Middle East. Optimism grew after reports that Iran may join talks with the United States ahead of a ceasefire deadline, easing geopolitical concerns. Meanwhile, declining crude oil prices further supported equities by tempering inflation worries and lowering cost pressures for firms. Still, gains were capped as investors stayed cautious, closely tracking developments in negotiations and broader global risks. Uncertainty surrounding the durability of a ceasefire continued to limit stronger upside, leaving markets sensitive to incoming headlines. Among the top performers were Hong Kong Exchanges (+1.4%), Semiconductor Manufacturing (+0.5%), Meituan Class (+1.5%), Xiaomi Corporation (+0.3%), and Pop Mart International (+2.2%).