Hong Kong Stocks Fall on Renewed US-Iran Tensions

The Hang Seng Index dipped 270 points, or 1.1%, to 25,364 on Thursday, extending losses from the previous session as renewed US-Iran clashes dampened risk appetite across global markets. Hong Kong equities tracked overnight declines on Wall Street, where investors turned cautious amid concerns that escalating tensions in the Middle East could threaten a fragile ceasefire and heighten risks to global growth. Technology stocks led the downturn, with Lenovo falling 3.6% amid weakness in US technology shares, while financial and retail trade counters also came under pressure. Other notable decliners included Tencent (-0.5%), Semiconductor Manufacturing International (-1.8%), AIA (-1.0%), Xiaomi (-1.1%), and Meituan (-1.9%). In contrast, Pop Mart International and Kuaishou Technology were among the few gainers, advancing 1.8% and 0.7%, respectively.

The Hang Seng Index slipped 405 points, or 1.6%, to close at 25,633 on Wednesday, snapping a two-session rally as investors took profits after recent gains fueled by optimism surrounding artificial intelligence-related investments. Technology stocks led the decline after spearheading yesterday's advance, while financial and retail trade shares also came under pressure. Market sentiment turned more cautious amid escalating geopolitical tensions in the Middle East following reports that Iran's Revolutionary Guards attacked U.S. Fifth Fleet headquarters, an airbase, and helicopters in a regional country, raising concerns over regional stability and potential disruptions to global energy supplies. In corporate front, Ximei Resources plunged as much as 19% after announcing a HK$549 million discounted share placement to fund acquisitions and expand production capacity. Among notable laggards included Tencent (-3.2%), Lenovo (-1.4%), Meituan (-5.9%), Xiaomi (-3.3%), and Kuiashou (-4.3%).

The Hang Seng Index surged 640 points, or 2.5%, to close at 26,038 on Tuesday, extending its rally from the previous session as technology stocks led broad-based gains. Market sentiment was boosted by continued optimism surrounding artificial intelligence-related investments, following fresh record highs on Wall Street overnight driven by major US technology shares. Technology counters spearheaded the advance, with Tencent Holdings and Meituan jumping 10.9% and 9.1%, respectively. Financial and retail trade stocks also supported the rally, reflecting improved confidence in economic prospects and consumer demand. Other notable gainers included Semiconductor Manufacturing International (2.8%), Lenovo (5.9%), Xiaomi (2.9%), and Kuiashou Technology (5.5%). Meanwhile, traders continued to monitor developments in global trade negotiations and geopolitical tensions in the Middle East for further clues on the market outlook.