Hong Kong Stocks Rebound on Rate Hopes

The Hang Seng Index rose 0.6%, or 150 points, to 25,459 on Thursday, tracking gains across Asian markets as a pause in the global bond selloff eased concerns over tighter monetary policy. The rebound followed a weaker-than-expected US private-sector jobs report and comments from New York Fed President John Williams that suggested there was no immediate need for further rate hikes. Meanwhile, President Donald Trump said renewed US attacks on Iran would likely be short-lived, helping ease concerns over a prolonged Middle East conflict, while lower oil prices provided some relief over inflation and energy-cost pressures. Technology and financial stocks also gained, supporting the broader market. Shein also remained under pressure, with shares falling more than 5% on Wednesday to HK$46 on their second day of Hong Kong trading. Notable gainers included Tencent (0.4%), Lenovo (1.1%), MiniMax (1.0%), Akeso (3.0%), AIA (1.8%).

The Hang Seng Index traded flat, to close at 25,311 on Wednesday, stabilizing after coming under pressure earlier in the session as escalating US-Iran tensions triggered a broad risk-off move across Asian markets, while bargain hunting helped offset early losses. Renewed US airstrikes on Iran and retaliatory attacks raised fears of further disruptions around the Strait of Hormuz, pushing Brent crude above $95 a barrel and WTI above $91. Higher energy prices revived inflation concerns and pushed the US 10-year Treasury yield to 4.798%, while markets raised the probability of a Reserve rate hike. Meanwhile, Shein shares slipped 0.45% to HK$48.28 on their second day of trading after falling as much as 10% during Tuesday’s debut. The stronger US dollar and rising borrowing costs added to pressure on Hong Kong’s rate-sensitive and technology-heavy equities. Notable laggards included Cathay Pacific (-5.0%), Tencent (-1.3%), Z.AI Co. (-6.0%), Lenovo ( -1.2%), and MiniMax (-1.1%).

HK50 decreased to 25089.00 Index Points, the lowest since July 2026. Over the past 4 weeks, Hong Kong Stock Market Index (HK50) lost 3.23%, and in the last 12 months, it decreased 0.68%.