Hong Kong Stocks Close Lower, Investors Wary of Oil and Inflation Risks
Hong Kong stocks closed Tuesday (May 12) in the negative zone after reversing morning gains. The Hang Seng Index fell 40 points, or 0.2%, to 26,369, as optimism from the AI-driven tech stock rally faded and investors returned to risk aversion.
Market caution was also fueled by escalating tensions in the Middle East. Sentiment was weighed down by concerns that rising oil prices could exacerbate inflationary pressures, following reports that the US was considering additional military options against Iran after peace efforts reportedly stalled.
Externally, market participants were closely monitoring developments ahead of the anticipated meeting between US President Donald Trump and Chinese President Xi Jinping, amidst still-tense relations between the world's two largest economies. This focus has heightened investor caution regarding policy direction and geopolitical stability, which could impact risk assets.
At the stock level, pressure came from several large issuers, including Tencent (-0.9%), SMIC (-2.1%), Pop Mart (-3.5%), and Xiaomi (-0.9%). Meanwhile, Kuaishou gained 2.7% and Deepxi gained 7.4%, but neither was enough to lift the overall index. (asd)
Source: Newsmaker.id