Hong Kong Stocks Sink on Oil Shock

The Hang Seng Index slipped 0.6%, or 149 points, to close at 24,806 on Friday, extending losses further this week as escalating Middle East tensions and surging oil prices weighed on sentiment. Brent crude climbed above US$109 a barrel as disruptions to key shipping routes raised concerns over global energy supplies, while higher oil prices fueled inflation fears and increased expectations for tighter monetary policy. Global bond yields also rose, with the US 10-year Treasury yield nearing 5%, adding pressure on equities ahead of the US August CPI report and the Fed’s policy meeting next week. Chinese AI startup Moonshot was reportedly exploring dual Hong Kong and Shanghai listings amid weaker performance. Notable laggards included Z.AI Co. (-3.2%), MiniMax (-7.5%), Kingboard Laminates (-1.5%), SMIC (-0.5%), and Lenovo (-3.0%). Over the past month, JD Logistics and Kuaishou have each fallen about 26%, while Meituan, Shenzhou International and Trip.com declined more than 18%.

The Hang Seng Index fell 1.3%, or 320 points, to close at 24,954 on Thursday, as escalating Middle East tensions and surging oil prices weighed on investor sentiment. Brent crude extended its rally above US$100 a barrel after Iran said it was prepared for a more intense conflict, raising concerns over disruptions to energy flows through the Strait of Hormuz. The US 10-year Treasury yield also climbed to around 4.86%, its highest level since November 2023, while Wall Street stocks fell for a third straight session. Investors remained cautious ahead of key US inflation data that could influence the Federal Reserve’s interest-rate outlook. Notable laggards included Tencent (-1.7%), Z.AI Co. (-10.8%), MiniMax (-9.0%), Xiaomi (-1.6%) and SMIC (-2.3%). Meanwhile, Hong Kong’s technology sector continued to attract investor interest amid a strong IPO pipeline, with AI startup Moonshot having confidentially filed for a Hong Kong listing and DeepSeek preparing for a possible domestic IPO.

The Hang Seng Index was little changed, down to 0.2%, or 42 points, to close at 25,275 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%.