Hong Kong Stocks Hit 11-Month Low

The Hang Seng Index fell 300 points, or 1.2%, to 24,105 on Thursday, extending losses for a seventh consecutive session and marking its lowest level since July 2025, as investors remained cautious amid escalating tensions in the Middle East. Sentiment stayed fragile after the US launched fresh strikes on multiple targets in Iran for a second consecutive day, with President Donald Trump accusing Tehran of delaying negotiations on an interim peace deal. Adding to market concerns, Iran announced a halt to vessel traffic through the Strait of Hormuz following the attacks, threatening a fragile ceasefire and raising fears of disruptions to global energy supplies. Most sectors traded lower, led by retail, consumer, and selected technology shares. Among the notable laggards were Lenovo (-0.6%), HKEX (-0.5%), and Xiaomi (-0.9%). However, gains in several heavyweight stocks helped limit broader losses, with Tencent rising 1.4%, AIA advancing 2.4%, and SMIC adding 0.6%.

The Hang Seng Index fell 158 points, or 0.6%, to close at 24,408 on Wednesday, extending losses for a sixth consecutive session and remained its lowest level since late March. Investor sentiment remained fragile amid escalating tensions in the Middle East and a renewed selloff in selected technology shares. Markets were pressured after reports that US forces launched fresh strikes against Iran following the downing of an American helicopter, raising concerns about broader regional instability and threatening a fragile ceasefire. Oil prices also rebounded on fears of potential supply disruptions. Meanwhile, investors assessed China's latest inflation data, which showed annual consumer price growth held steady at 1.2% in May, unchanged from April, reinforcing expectations that policymakers may continue implementing measures to aid economic recovery. Among the biggest decliners were SMIC (-3.7%), Xiaomi (-3.2%), Lenovo (-9.5%), Kingboard Laminates (-3.2%), and AIA (-1.3%).

The Hang Seng Index slipped 91 points, or 0.4%, to close at 24,566 on Tuesday, extending losses for a fifth straight session and hovering near its lowest level since late March. Sentiment remained fragile despite reports that tensions in the Middle East eased following a halt in hostilities between Israel and Iran and as optimism surrounding AI-related stocks improved. Finance, retail trade and energy minerals posted losses while selected technology stocks gained. Notable decliners included AIA (-2.2%), Pop Mart (-1.4%), Knowledge Atlas Technology (-12.8%), and Xiaomi (-0.7%). In contrast, Tencent advanced 1.8% and Semiconductor Manufacturing International Corporation gained 3.2%, helping the benchmark recover from earlier losses. Investors remained cautious over the broader pace of China's economic recovery despite stronger-than-expected Chinese trade data, with both exports and imports exceeding forecasts on solid demand for technology hardware amid rising global AI investment.