Hong Kong Stocks Ease After Rally

The Hang Seng Index edged lower by around 0.6%, or 160 points, to 25,289 on Tuesday, giving back part of previous sessions strong gains as investors turned cautious amid renewed geopolitical tensions and a rebound in oil prices. Brent crude climbed above $91 a barrel after the US-Iran ceasefire expired, fueling concerns that higher energy costs. A mixed overnight performance on Wall Street also weighed on sentiment. Among individual stocks, Xiaomi remained in focus ahead of its quarterly earnings after the strong results could extend the company's best quarterly share-price rally in more than a year, provided it reassures investors that rising material costs are coming under control. Meanwhile, sentiment remained restrained following weaker-than-expected July economic data from China released a day earlier. Notable laggards included Tencent (-0.9%), MiniMax (-6.4%), Lenovo (-1.2%), AIA (-2.0%), and Kingboard Laminates (-3.2%).

The Hang Seng Index rose 1.3%, or 336 points, to close at 25,435 on Monday, rebounding from a fourth consecutive session of decline supported by strength in technology and semiconductor shares, as upbeat earnings and optimism surrounding AI-related businesses boosted investor confidence. SenseTime surged around 8.9% after the artificial-intelligence company forecast a first-half profit of RMB500 million to RMB700 million, which would mark its first profit since its Hong Kong listing. Hong Kong’s IPO market also remained in focus. However, investors remained cautious about geopolitical risks and after China's July data disappointed, with industrial output and retail sales both slowing more than expected while the unemployment rate rose to 5.2%. Among notable movers included Semiconductor Manufacturing International Corporation (6.1%), Tencent (1.5%), Kingboard Laminates (9.1%), MiniMax (1.5%), and Xiaomi (1.0%).

The Hang Seng Index fell 1.1% to close at 25,117 on Friday, marking its fourth consecutive session of losses and hitting its lowest level since July 24, as technology stocks remained under pressure and investors stayed cautious ahead of key corporate earnings and amid lingering geopolitical uncertainty. Among individual stocks, Meituan fell 4.4%, while Alibaba dropped 2.1%. Lenovo retreated 3.7% after reaching an all-time high in the previous session. CK Asset Holdings fell more than 7% after the property giant reported strong interim earnings but opted not to declare a special dividend. On the upside, Semiconductor Manufacturing International Corp. rose 4.8% after reporting a sharp increase in second-quarter profit, making it the strongest-performing Hang Seng constituent at the open. On the data front, Hong Kong’s annual GDP growth slowed to 4.3% in Q2 from 5.9% in the previous quarter, pointing to a moderation in economic momentum. For the week to date, the benchmark fell 2.2%.