Hong Kong Stocks Extend Losing Streak

The Hang Seng Index slipped 1.7%, or 419 points, to 24,333 on Friday, extending losses for third consecutive sessions as surging global bond yields surged and concerns over inflation and interest rates weighed on risk appetite. The decline came after US Treasury yields climbed sharply on Thursday, with the 10-year yield rising to around 5.20%, its highest level since 2007, while the 30-year yield reached its highest level since 2004, reinforcing expectations that the Federal Reserve could keep rates higher for longer. Brent crude remained above $103 a barrel after a Houthi missile attack on Saudi Arabia revived concerns about potential supply disruptions. Technology and finance stocks led the decline, with Tencent (-1.1%), AIA (-2.2%), Xiaomi (-3.4%), HKEX (-1.4%), and Meituan (-2.5%) among the notable losers. Investors also awaited China’s PMI data and continued to assess the Trump-Xi Jinping summit for signals on trade and economic policy.

The Hang Seng Index fell 0.3%, or 73 points, to close at 24,761 on Thursday, extending losses for a second session as global bond sell-off, firmer US dollar and a rebound in oil prices weighed on sentiment. US Treasury yields surged overnight, with the 10-year yield reaching its highest level since 2007, while the dollar strengthened to a near two-month high. The backdrop could pressure Hong Kong technology and growth stocks, which remain sensitive to higher global borrowing costs. Investors also focused on the Trump-Xi summit in Washington, with US Treasury Secretary Scott Bessent saying the US and China had agreed to extend their trade truce by two months to January 10. Oil prices rebounded amid uncertainty over progress in US-Iran talks, adding to inflation concerns. Notable laggards were Tencent (-0.6%), Z.AI Co. (-1.8%), Lenovo (-2.4%), Genscript Biotech (-4.8%), and Meituan (-0.8%).

The Hang Seng Index fell 1.0%, or 254 points, to close at 24,834 on Wednesday, reversing a modest gain in the previous session and ending a three-session winning streak. Technology stocks led the decline as investors took profits and remained cautious ahead of the expected meeting between Chinese President Xi Jinping and US President Donald Trump. Investors are watching the talks for signals on trade, semiconductors, artificial intelligence and supply chains, with AI emerging as a key area of strategic competition between the world's two largest economies. Alibaba fell 4.2% after a report that China is probing potential data leaks involving DeepSeek and Moonshot. Meanwhile, Brent crude fell below $100 a barrel, offering some relief from recent inflation concerns. Finance, technology services and retail trade stocks led the decline, with Tencent (-2.4%), Z.AI Co. (-12.4%), Xiaomi (-3.8%), MiniMax (-4.0%), and AIA (-1.2%) among notable laggards.