Hong Kong Shares Recover After Three Losses

The Hang Seng Index rose 0.5%, or 124 points, to around 24,635 on Monday, rebounding from three consecutive losses from last week as finance, technology and energy minerals provided support. The rally came despite a rise in Treasury yields to multi-decade highs as markets priced in the possibility of further Federal Reserve rate hikes. Oil prices also moved higher after President Donald Trump turned down Iran’s proposal to reopen the Strait of Hormuz, while Tehran indicated it remained firm on its conditions for restoring access through the key shipping route. On the domestic front, China’s industrial profits rose 15.7% year-on-year to CNY 5.27 trillion in the first eight months of 2026, slowing from 17.6% growth in the January-July period, highlighting a moderation in corporate profit growth. Notable movers included Tencent (1.8%), AIA (0.9%), KE Holdings (2.6%), InSilico Medicine (0.3%), and Meituan (0.2%).

The Hang Seng Index slipped 1.0%, or 251 points, to close at 24,510 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 (-0.3%), AIA (-2.8%), Xiaomi (-2.3%), HKEX (-1.7%), and Meituan (-0.8%) 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%).