Hong Kong Shares Slip for Second Day

The Hang Seng Index fell 72 points, or 0.3%, to 25,850 on Tuesday, as sentiment remained cautious amid persistent geopolitical tensions and mixed external cues. Oil prices held recent gains as the US weighed a proposal from Iran while the Strait of Hormuz remained largely constrained, keeping concerns over global supply disruptions and inflationary pressures in focus. Across the region, Asian markets traded near recent highs but showed limited direction, with investors staying sidelined ahead of key technology earnings and upcoming central bank decisions. The uncertain backdrop capped risk appetite in Hong Kong, preventing any sustained upward momentum. On the corporate side, Contemporary Amperex Technology Co. Limited set the price for its $5 billion Hong Kong share sale at the lower end of its target range, pointing to cautious but sufficient investor interest. Notable laggards included Tencent Holdings (-1%), SMIC (-1.3%), and Xiaomi Corporation (-1.1%).

The Hang Seng Index fell 52 points, or 0.2%, to close at 25,926 on Monday, as early volatility gave way to cautious sentiment amid rising geopolitical tensions and disruptions in energy markets. Oil prices surged to recent highs after stalled US-Iran peace talks kept the Strait of Hormuz largely impassable, raising concerns over prolonged supply constraints and global inflation. Higher crude prices weighed on risk appetite, as investors worried that persistent energy cost pressures could delay expected monetary easing. US stock futures also edged lower ahead of a busy week of central bank meetings and key earnings. Hong Kong equities lagged regional peers, with investors turning defensive amid uncertainty over the interest rate outlook. Still, semiconductor stocks extended gains from the previous session, led by Semiconductor Manufacturing International Corporation, which jumped 6.0%. In contrast, notable losers included Tencent (-3%), Meituan (-0.7%), and Xiaomi (-0.3%).

The Hang Seng Index rose 63 points, or 0.24%, to close at 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%).