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Source: Newsmaker.id
The Hang Seng Index closed sharply lower in Thursday's trading (Sept 10), falling approximately 1.3%—or 320 points—to 24,954. This decline pushed the index back below the psychological 25,000 mark amidst mounting concerns over Middle East tensions and surging energy prices.
Brent crude held above US$100 per barrel after Iran signaled readiness for intensified conflict. The situation has heightened fears regarding potential energy supply disruptions through the Strait of Hormuz and amplified risks of global inflation.
Pressure also stemmed from the US bond market, with the 10-year Treasury yield hovering around 4.86%—its highest level since November 2023. Elevated yields and a three-session losing streak on Wall Street further dampened investor risk appetite in the Hong Kong market.
Technology stocks were among the biggest drags on the market. Tencent fell 1.7%, SMIC weakened 2.3%, and Xiaomi lost 1.6%. The pressure was even more acute for artificial intelligence-related stocks; Z.AI plunged 10.8% and MiniMax slumped 9%.
Nevertheless, Hong Kong's technology sector remains a focal point for the medium term, driven by robust initial public offering (IPO) activity. AI startup Moonshot has reportedly filed for a confidential listing in Hong Kong, while DeepSeek is preparing for a potential domestic IPO.
Investors are now awaiting US inflation data, which could determine the Federal Reserve's policy trajectory. Higher-than-expected inflation could keep Treasury yields elevated and prolong pressure on technology stocks and risk assets.
Newsmaker Analysis: The Hang Seng's close below 25,000 indicates that selling pressure remains dominant. A combination of oil prices exceeding US$100, high US yields, and the sharp decline in AI stocks serves as a major headwind. Market sentiment is likely to remain defensive as long as geopolitical risks and expectations of high interest rates have not subsided. (arl)
Source: Newsmaker.id