Hong Kong Stocks Edge Lower on Cautious Sentiment

The Hang Seng Index edged down 0.4%, or 85 points, to around 24,830 on Tuesday, as investors remained cautious ahead of key economic and monetary policy developments. Gains in technology stocks provided some support to the broader market, although weakness in selected shares kept the benchmark in negative territory. Investors remained cautious ahead of key global central-bank decisions and amid elevated oil prices, which have renewed concerns over inflation and the interest-rate outlook. Additionally, the US 10-year Treasury yield briefly climbed to 5%, its highest level since October 2023, ahead of the Federal Reserve's policy decision this week. Meanwhile, investors awaited China's August economic data, including new-home prices, industrial production and retail sales due later in the day. Notable laggards included Z.AI Co. (-1.5%), Trip.com (-1.0%) and Genscript Biotech (-2.9%), while Tencent (0.9%), Kingboard Laminates (3.1%) and Techtronic Industries Co. (2.2%) advanced.

The Hang Seng Index rose 0.5%, or 112 points, to close at 24,918 on Monday, trimming from earlier losses after three consecutive sessions of declines. Investors remained cautious amid renewed concerns over higher oil prices and the outlook for global interest rates. Renewed tensions in the Middle East pushed crude prices higher, raising concerns over inflation and of tighter monetary policy. Tech stocks remained under pressure, with AI-related shares particularly weak following a broader selloff in Asian AI stocks. Z.AI Co. plunged 7.1%, while MiniMax fell 4.5%, as investors reacted to concerns over the pace of advanced-AI development after Anthropic CEO Dario Amodei, OpenAI CEO Sam Altman and xAI CEO Elon Musk called for greater caution around the industry's rapid expansion. Z.AI's decline came despite the company recently raising around US$5 billion through a HK share placement and convertible bonds. Notable movers included Tencent (0.7%), Lenovo (3.5%), and Xiaomi (2.7%).

The Hang Seng Index slipped 0.6%, or 149 points, to close at 24,806 on Friday, extending losses further this week as escalating Middle East tensions and surging oil prices weighed on sentiment. Brent crude climbed above US$109 a barrel as disruptions to key shipping routes raised concerns over global energy supplies, while higher oil prices fueled inflation fears and increased expectations for tighter monetary policy. Global bond yields also rose, with the US 10-year Treasury yield nearing 5%, adding pressure on equities ahead of the US August CPI report and the Fed’s policy meeting next week. Chinese AI startup Moonshot was reportedly exploring dual Hong Kong and Shanghai listings amid weaker performance. Notable laggards included Z.AI Co. (-3.2%), MiniMax (-7.5%), Kingboard Laminates (-1.5%), SMIC (-0.5%), and Lenovo (-3.0%). Over the past month, JD Logistics and Kuaishou have each fallen about 26%, while Meituan, Shenzhou International and Trip.com declined more than 18%.