Hang Seng Drops 1.2%, Middle East Risks Weigh on Sentiment
Hong Kong stocks weakened on Wednesday, with the Hang Seng Index falling 305 points, or 1.2%, to 26,180, snapping a two-session winning streak. Investors returned to caution amid a mixed global environment, with geopolitical uncertainty keeping risk appetite limited.
The extension of the US-Iran ceasefire provided limited support, but was not enough to ease concerns as stalled talks and disruptions to key oil shipping routes persist. Rising oil prices also heightened market concerns about inflationary pressures and the impact of higher costs on corporations, while global indicators were mixed, with US equity futures trading slightly higher amid persistently high oil prices.
At the stock level, declines were led by major issuers including Tencent (-2.0%), Xiaomi (-1.3%), Semiconductor Manufacturing (-1.6%), Zhongsheng Group (-0.8%), and Hong Kong Exchanges & Clearing (-0.3%). Investors are also awaiting tomorrow's release of inflation data to gauge the direction of global interest rate and monetary policy expectations.
Source: Newsmaker.id