Hong Kong Stocks Reverse Gains

The Hang Seng Index fell 0.4%, or 98 points, to close at 25,213 on Thursday, reversing earlier gains as investors took profits and sentiment weakened toward the close. The benchmark had risen as much as 0.7% in early trading, supported by strength in technology and financial stocks, but the gains failed to hold. Technology stocks remained in focus as mainland Chinese investors continued to shift funds into Hong Kong-listed AI and technology names, including Alibaba, Tencent and MiniMax. Meanwhile, Shein Global Holdings dropped 8.7% on its third day of trading in Hong Kong, extending its weak post-listing performance. Investors also remained cautious ahead of key US employment data due Friday, which could provide further clues on the Federal Reserve’s interest-rate outlook. Lower oil prices and softer bond yields provided some support to regional markets, but concerns surrounding global growth and geopolitical risks continued to weigh on sentiment.

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%).