Hong Kong Stocks Fall as Hormuz Hopes Fade

The Hang Seng Index fell 0.8%, or 206 points, to around 25,750 on Tuesday as investors turned risk-averse after hopes for a near-term reopening of the Strait of Hormuz faded, pushing oil prices higher and reviving inflation concerns ahead of the US July CPI report later in the day. The decline also tracked overnight weakness on Wall Street, where semiconductor stocks led losses. Tech shares came under renewed pressure, offsetting support from continued interest in Chinese equities and corporate earnings. Techtronic Industries remained in focus after the power-tool maker reported first-half profit above market expectations, with gross margin rising to a record 42.9%. Investors also watched Creality following its Hong Kong listing, as it seeks to move toward higher-value, easier-to-use products, while robust IPO activity continued to underpin market sentiment. Among notable laggards included Tencent (-2.1%), Z.AI Co. (-1.4%), Meituan (-0.4%), SMIC (-0.2%), and Lenovo (-1.6%).

The Hang Seng Index rose 1.1%, or 269 points, to close at 25,937 on Monday, tracking broader Asian gains after softer-than-expected US jobs data reduced expectations of an imminent Federal Reserve rate hike. Lower Treasury yields and a weaker US dollar boosted risk appetite, particularly for technology and growth stocks. Sentiment also improved after China's annual inflation eased to 0.5% in July from 1.0% in June, the lowest reading in six months. Investors also watched Guotai Junan International ahead of its trading resumption following its parent's HK$28.6 billion take-private proposal, signaling further consolidation in China's brokerage sector. Hong Kong's longer-term appeal remained supported by HKEX's role as a gateway for international capital, though geopolitical tensions and elevated oil prices continued to pose risks. Notable movers included Tencent (0.5%), Z.AI Co. (0.5%), Xiaomi (2.1%), Wuxi Biologics (0.6%), and Lenovo (3.2%).

The Hang Seng Index edged up 0.5%, or 138 points, to close at 25,668 on Friday, recovering from an early decline as late-session buying helped the benchmark index finish in positive territory. The market came under pressure in the morning as investors locked in recent gains, but sentiment improved later in the day amid renewed interest in technology and selected heavyweight stocks. The rebound was supported by optimism over China’s economic outlook following stronger-than-expected trade data, which boosted confidence in the resilience of the country’s export sector. Beyond equities, China is also pushing to strengthen Hong Kong’s position as an international gold trading and storage center. Despite the modest advance, trading remained cautious as investors weighed global market conditions, interest-rate expectations, and the pace of China’s economic recovery. Notable movers included MiniMax (9.8%), Z.AI Co. (14.6%), Kingboard Laminates (9.9%), SMIC (2.4%), and Xiaomi (0.7%).