Hong Kong Stocks Inch Higher Despite Caution

The Hang Seng Index rose 41 points, or 0.2%, to close at 26,388 on Wednesday, as gains in technology services shares helped support the market despite lingering concerns over rising geopolitical tensions and persistent inflation pressures. Sentiment remained cautious as investors monitored the anticipated Trump-Xi meeting and developments in the Middle East after President Donald Trump adopted a tougher stance toward Iran following criticism of ceasefire efforts. In Hong Kong, shares of MINISO Group rose 4.6% after the company issued a strong Q1 outlook, forecasting revenue growth of 28%-29% and a sharp increase in profits. Among notable movers included Tencent Holdings (1.4%), Meituan Class (4.5%), and Xiaomi Corporation (1.2%). In contrast, Pop Mart fell 1.7% after warning that rising raw material and fuel costs could pressure 2026 profit margins, despite continued strength in overseas demand for its collectibles.

The Hang Seng Index was little changed on Wednesday, as investors balanced concerns over rising U.S. inflation and escalating Middle East tensions against optimism surrounding the anticipated Trump-Xi meeting. Sentiment remained cautious after President Donald Trump signaled a tougher stance toward Iran following criticism of the ceasefire, while persistent geopolitical risks kept pressure on global markets. Oil prices held firm after sharp gains as the prolonged conflict in the Middle East continued to disrupt shipping flows through the Strait of Hormuz, fueling worries over renewed inflationary pressures. Chinese technology shares were also in focus with investors increasingly demanding clearer returns from heavy AI spending by firms such as Alibaba Group and Tencent ahead of the earnings season. Notable laggards included Tencent Holdings (-0.4%), SMIC (-3.0%), and Techtronic Industries (-2.9%), while AIA Group and Pop Mart advanced 1.2% and 2.0%, respectively.

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.