Hang Seng Drops Again, Tech Pressure and Geopolitical Risks Weaken Sentiment
Hong Kong stocks weakened for the third consecutive session on Friday (June 5), with the Hang Seng Index dropping 90 points (0.4%) to 25,165. The decline was led by technology and financial stocks, reflecting still-fragile sentiment after an earlier rally prompted profit-taking.
Hong Kong's movements followed sluggish regional trading, after AI-themed stocks on Wall Street weakened and triggered profit-taking in several technology and semiconductor names. This correction has made investors more selective, especially in stocks that have risen too quickly in recent weeks.
Sentiment is also weighed down by geopolitical uncertainty related to the still-fragile US-Iran ceasefire. Reports of stalled negotiations clash with statements by President Donald Trump claiming talks are progressing and nearing completion. These conflicting signals keep the market wary of the risk of a new escalation in the Middle East.
Several large-cap stocks were the main drags on the index, including AIA (-3.3%), Lenovo (-4.4%), HKEX (-0.5%), and SMIC (-3.7%). Meanwhile, Tencent rose 1.3% and Beijing 51WORLD surged 9.2%, providing some resistance to the decline.
Looking ahead, the direction of the Hang Seng remains highly sensitive to two themes: whether the correction in AI stocks continues, and whether geopolitical headlines provide new certainty or increase volatility. (asd)
Source: Newsmaker.id
