Hong Kong Stocks Little Changed Amid Oil Fears

The Hang Seng Index was little changesd, down 0.2%, or 39 points, to 25,280 on Wednesday, as investors remained cautious amid escalating Middle East tensions and rising oil prices. Brent crude climbed toward US$100 a barrel after attacks on Saudi energy facilities raised concerns over global supply disruptions, fueling inflation fears and potentially limiting the scope for interest-rate cuts. Overnight, US futures weakened after Wall Street’s overnight losses. Meanwhile, strength in Asian chip stocks and continued investor interest in artificial-intelligence shares helped cushion the decline. On the data front, China’s annual inflation rate accelerated to 0.8% in August from 0.5% in July, while producer prices rose 3.8% year-on-year, up from a 3.5% increase in July driven partly by higher food and energy costs. Among individual stocks, Haidilao plunged nearly 10%, while Lenovo rose 2.1%, MiniMax gained 1.9% and Kingboard Laminates advanced 3.3%.

The Hang Seng Index edged down to 0.4%, or 96 points, to close at 25,317 on Tuesday, extending losses from the previous session as investor sentiment remained subdued amid concerns over rising oil prices and heightened geopolitical tensions. The decline came amid concerns that higher energy costs could fuel inflation and delay global interest-rate cuts. Technology and tech service stocks were among the major drags, with Z.AI Co. (-10.0%), MiniMax (-5.6%) and SMIC (-4.3%) trading lower, as well as Tencent (-0.7%) and Xiaomi (-2.1%) also fell. Losses were partly cushioned by fresh data showing China’s export growth remained robust in August. Hong Kong's IPO market remained active. Semiconductor and memory-chip maker Shenzhen Longsys Electronics began trading on the Hong Kong Stock Exchange on Tuesday, after raising about HK$7.1 billion in its IPO. The listing highlights continued investor interest in China's technology and semiconductor sectors.

The Hang Seng Index fell 0.9%, or 238 points, to close at 25,413 on Monday, retreating from a two-week high in the previous session, weighed down by declines in the financials, technology, and energy minerals sectors. Investors also turned cautious following stronger-than-expected US jobs data, which boosted expectations for a Federal Reserve rate hike this month. Meanwhile, China’s August trade balance is due later this week, with the trade surplus expected to rise to $120.1 billion from $101.1 billion a year earlier and $112.5 billion in July, offering fresh clues about external demand and the strength of the broader Chinese economy, with the reading potentially influencing market sentiment. Among stocks, Xiaomi shares fell 3.2%, despite after raising prices on some smartphone models and continuing its Class B share repurchases. Tencent Holdings (-0.8%), MiniMax (-3.3%), and Meituan (-1.8%) declined, while Kingboard Laminates (7.8%), and Kingboard Holdings (4.1%) gained.