Hong Kong Stocks Reverse Early Gains to Close Lower

The Hang Seng Index edged down 59 points, or 0.2%, to close at 26,347 on Tuesday, reversing gains from the morning session as optimism from the recent AI-driven rally in technology shares faded and investors remained cautious over escalating tensions in the Middle East. Market sentiment was also pressured by concerns that higher oil prices could fuel inflation after reports suggested the US was considering additional military options against Iran following stalled peace efforts. Meanwhile, investors continued to monitor developments ahead of the anticipated summit between US President Donald Trump and Chinese President Xi Jinping amid strained relations between the world’s two biggest economies. Notable laggards included Tencent Holdings (-1.3%), Semiconductor Manufacturing International Corporation (-0.1%), Pop Mart International (-3.1%), and Xiaomi Corporation (-0.8%), while Kuaishou Technology (+2.5%) and Deepxi Technology (+13.7%) advanced.

The Hang Seng Index rose 155 points, or 0.6%, to 26,560 on Tuesday, extending gains from the previous session as optimism surrounding artificial intelligence-related shares helped support regional sentiment despite lingering geopolitical concerns. The advance came after reports indicated investors remained bullish on the AI trade even as the US and Iran failed to reach a peace agreement, while oil prices climbed amid the ongoing stalemate. In Hong Kong, financial and technology shares led gains, with continued buying interest in AI-related and growth stocks helping to offset broader caution. Notable movers included Kuaishou Technology (10.1%), Tencent Holdings (0.1%), Semiconductor Manufacturing International Corporation (1.4%), AIA Group (0.4%), and Techtronic Industries Co. (0.7%). Despite the advance, trading remained cautious as investors monitored Middle East tensions and positioned ahead of upcoming economic data from Hong Kong for clearer growth signals.

The Hang Seng Index were little changed, closing at 26,407 on Monday, as early losses driven by geopolitical concerns were offset by selective buying in technology and financial shares later in the session. Sentiment initially weakened after US President Donald Trump rejected Iran’s latest peace proposal as “totally unacceptable,” reviving concerns over prolonged tensions in the Middle East and potential disruptions to shipping through the Strait of Hormuz. However, bargain hunting later supported the market, with Shenzhen Ldrobot surging more than 150% in its Hong Kong debut amid strong demand for AI and robotics-related stocks. GoFintech Quantum Innovation also rallied after announcing a strategic partnership in quantum-enabled drug discovery. Investors still remained cautious ahead of the release of Hong Kong’s first-quarter GDP growth data later this week, which could offer fresh signals on the city’s economic recovery.