Hong Kong Stocks Edge Higher

The Hang Seng Index rose 60 points, or 0.2%, to around 25,660 on Tuesday, as optimism surrounding a potential US-Iran agreement earlier supported Asian equities and weighed on oil prices. Washington and Tehran were reportedly edging closer to a possible deal aimed at reducing tensions and restoring access through the Strait of Hormuz. Sentiment toward Xiaomi Corporation deteriorated after short bets on the company climbed to a record high amid concerns over rising memory costs and intensifying competition in China’s electric vehicle market. Financial and electronic technology stocks led the index higher, with notable gains in Semiconductor Manufacturing International Corporation and Lenovo Group, which surged 9.1% and 10.7%, respectively. Other movers were Xiaomi Corporation (0.4%), Kingboard Laminates (8.5%), and XPeng Inc. (4.7%). In contrast, the technology services sector fell about 0.7%, with Tencent Holdings down nearly 1%.

The Hang Seng Index climbed 220 points, or 0.9%, to close at 25,606 on Friday, recovering from the previous session’s losses and tracking overnight gains on Wall Street and boosted sentiment amid hopes for a potential US-Iran agreement to end the conflict. Reports indicated that Iran viewed the latest US proposal as helping to narrow differences between the two sides, reinforcing hopes for progress in negotiations. On the data front, investor sentiment was also supported after Hong Kong’s inflation rate held steady at 1.7% in April, unchanged from the previous month, signaling stable underlying price pressures. In Hong Kong, technology services surged 12.6%, led by strong gains in SMIC and Lenovo, which rose 7.6% and 19.8%, respectively. Other notable movers included Tencent Holdings (0.6%), Knowledge Atlas Technology (26.9%), and Sunny Optical Technology (1.5%). Hong Kong markets remained closed on Monday in observation of Vesak Day.

The Hang Seng Index fell 265 points, or 1.0%, to close at 25,386 on Thursday, reversing earlier gains as investor sentiment weakened and profit-taking emerged across the broader market, with losses in financial and technology services stocks weighing on the benchmark. The cautious tone came amid softer regional risk appetite following recent market advances. In Hong Kong, Sany Heavy Equipment International dropped 9.3%, marking its lowest level since January 16. Other major laggards included Tencent Holdings (-3.5%), Semiconductor Manufacturing International Corporation (-2.0%), and Meituan Class (-0.6%). Despite the broader decline, electronic technology shares outperformed, rising 9.9%, with Sunny Optical Technology gaining around 9.2%. Meanwhile, investors also awaited inflation data due today for signals on interest rates and global monetary policy direction.