Hong Kong Stocks Retreat From Two-Day Rally

The Hang Seng Index fell 250 points, or 1.0%, to 24,590 on Tuesday, snapping a two-session rally as investors locked in recent gains following the market's strong advance at the start of the week. Sentiment was also subdued ahead of key Chinese economic data releases, including industrial production, retail sales, house prices and the unemployment figures, which could offer fresh insights into the strength of the country's economic recovery. Meanwhile, weakness in finance and technology stocks added pressure to the benchmark, with both sectors pulling back after leading gains in the previous session. Knowledge Atlas fell to 2.9% as investors took profits following its nearly 33% surge in the previous session. Among notable laggards included Tencent Holdings (-1.4%), Semiconductor Manufacturing International Corporation (-0.4%), AIA (-1.0%), MMG (-10.3%), and China Hongqiao Group (-4.0%).

The Hang Seng Index climbed 125 points, or 0.5%, to close at 24,843 on Monday, kicking off the week on a positive note and extending gains from the previous session as investor sentiment improved after the US and Iran reached an interim agreement to reopen the Strait of Hormuz, with a formal signing ceremony expected later this week, easing concerns over disruptions to global energy supplies and reducing geopolitical risks. The deal triggered a sharp decline in oil prices, helping alleviate inflation worries and boosting appetite for risk assets across global markets. Knowledge Atlas Technology, also known as Zhipu AI, jumped 33% after unveiling an open-source model over the weekend, boosting optimism over China’s AI sector. Gains were broad-based, led by finance, technology, and retail trade shares. Notable gainers included included AIA (2.6%), Kingboard Laminates (22.3%), Lenovo (9.3%), and Semiconductor Manufacturing International Corporation (7.0%).

The Hang Seng Index rose 1.9% or 469 points to close at 24,718 on Friday, recovering from losses that pushed the benchmark to an 11-month low in the previous session, as improving global risk sentiment lifted equities across the region. Investor confidence strengthened after US President Donald Trump said negotiations with Iran had made significant progress, raising hopes that a peace agreement could be reached as soon as this weekend. The prospect of easing geopolitical tensions boosted appetite for risk assets globally. Meanwhile, oil prices fell to two-month lows as concerns over potential supply disruptions eased, supporting sectors sensitive to fuel costs. Heavyweight financial, technology, and retail trade stocks led the gains, while the communication sector was the only segment to post a modest decline. Among individual stocks, Tencent (+1.4%), AIA (+1.1%), Pop Mart (+2.6%), Xiaomi (+1.4%), and Knowledge Atlas (+3.4%) were the top performers.