Hang Seng Drops 1.1%, US-Iran Tensions Pressure Risk Appetite
Hong Kong stocks weakened on Thursday as the re-escalation of the US-Iran conflict dampened global risk appetite. The Hang Seng Index fell 270 points (1.1%) to 25,364, extending the previous session's decline and tracking Wall Street's overnight decline.
Investors tended to be more defensive due to concerns that escalation in the Middle East could disrupt the fragile ceasefire and increase risks to global growth. This cautious tone spread pressure across various sectors in Hong Kong, not just on specific stocks.
Technology stocks were the main drag. Lenovo fell 3.6% as US tech stocks weakened, while financial and retail stocks also suffered. Several major issuers weakened, including Tencent (-0.5%), SMIC (-1.8%), AIA (-1.0%), Xiaomi (-1.1%), and Meituan (-1.9%).
Amid the broad-based weakness, there were a few exceptions. Pop Mart International rose 1.8% and Kuaishou Technology gained 0.7%, providing some cushion against the index's decline.
The next direction will depend largely on two factors: whether US-Iran tensions ease or escalate, and how global markets respond to movements in oil and bond yields. As long as geopolitical headlines remain dominant, the Hang Seng tends to remain sensitive to risk-on/risk-off fluctuations. (asd)
Source: Newsmaker.id
