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Source: Newsmaker.id
The Hang Seng Index fell 0.8%, or approximately 210 points, to the 25,105 level during Wednesday's trading (Sept 2). This decline, marking the third consecutive session of losses, pushed Hong Kong's benchmark index to a five-week low.
Downward pressure mounted after a recent US airstrike on Iran was met with a retaliatory attack from Tehran. This escalation heightened concerns regarding supply disruptions through the Strait of Hormuz, driving Brent crude above US$95 and WTI past US$91 per barrel.
The surge in energy prices reignited inflation fears and pushed the yield on the 10-year US Treasury note to 4.798%. A strengthening dollar and growing expectations of Federal Reserve interest rate hikes also weighed on technology stocks and Hong Kong companies sensitive to borrowing costs.
Shares of Shein fell 0.45% to HK$48.28 on their second day of trading, following a 10% plunge during their debut. Selling pressure was also evident in Z.AI, which slumped 6%, as well as Cathay Pacific (-5%), Tencent (-1.3%), Lenovo (-1.2%), and MiniMax (-1.1%).
The Hang Seng remains at risk of further decline should the US-Iran conflict, oil prices, and bond yields continue to rise. Conversely, an easing of tensions in the Strait of Hormuz and a drop in energy costs could pave the way for a recovery in technology stocks and interest-rate-sensitive sectors.