Hong Kong Shares Edge Higher on Tech-Led Recovery

The Hang Seng Index rose 63 points, or 0.24%, to 25,978 on Friday, recovering from morning losses as bargain hunting returned in technology and semiconductor stocks, helping offset early caution driven by geopolitical concerns. Sentiment improved during the session as AI-related optimism gained traction, with DeepSeek’s latest model performance reinforcing confidence in China’s progress in artificial intelligence and supporting expectations of rising demand for domestic computing hardware. In Hong Kong, SMIC recorded strong gains of 10% to close reflecting heightened interest in chipmakers. The turnaround helped stabilize the market after a weak start, with tech and chip-related strength providing the main support despite ongoing unease over Middle East tensions and their potential impact on global risk appetite and energy prices. Among other notable movers were Lenovo Group (3.1%), Xiaomi (0.1%), and Guoxia Technology (33.8%).

The Hang Seng Index fell 270 points, or 1.0%, to 25,645 on Friday, extending its losing streak to a third session as risk appetite remained subdued amid persistent geopolitical uncertainty and uneven global cues. Sentiment was influenced by developments in the Middle East, where Donald Trump said Israel and Lebanon would extend their ceasefire by three weeks, providing some temporary relief but doing little to ease concerns over stalled US-Iran negotiations and the broader risk of escalation. Oil prices advanced for a fifth straight session reinforcing worries about prolonged supply risks and inflation pressures. Concerns that tensions could disrupt flows through key shipping routes, including the Strait of Hormuz, further dampened sentiment. Moreover, in Hong Kong, it opened lower following overnight losses on Wall Street. Notable laggards included Tencent Holdings (-1.3%), AIA Group (-0.1%), Geely Automobile (-1.8%), Akeso (-1.9%), and Kingboard Laminates (-3.6%).

The Hang Seng Index fell 248 points, or 1%, to close at 25,915 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, which could offer fresh signals on price pressures and influence expectations for monetary conditions. Among notable laggards were Tencent Holdings (-1.8%), Xiaomi Corporation (-1.9%), SMIC (-1.4%), Akeso (-12.7%), and Pop Mart (-2.9%).