Hong Kong Stocks Weaken on Technology Pressure
Hong Kong stocks weakened again on Friday, weighed down by pressure on global technology stocks. The Hang Seng Index fell 1.4%, or 325 points, to 22,747, extending its previous decline as investors remained cautious about the prospects for the technology sector.
The negative sentiment came after Wall Street's overnight volatility. A renewed selloff in large-cap technology stocks in the United States offset optimism from positive earnings reports from semiconductor companies. This situation also dampened investor interest in technology stocks in Asia, including Hong Kong.
Investor caution also persisted despite Apple supplier Lingyi iTech's official debut on the Hong Kong stock exchange through an initial public offering worth HK$8.3 billion. The IPO demonstrated that interest in companies related to artificial intelligence (AI) remains strong, but not yet strong enough to lift overall market sentiment.
Technology stocks were the main drag on the index. Tencent fell 1.4%, Semiconductor Manufacturing International Corporation fell 2.5%, while Lenovo plunged 4.2%. Pressure was also seen in financial and manufacturing stocks, with AIA down 1.8% and Kingboard Laminates down 1.3%.
However, the Hang Seng's decline was partially offset by gains in several stocks. Kingboard Holdings rose 0.9%, while CITIC Resources Holdings jumped 8.5%. However, these gains were insufficient to offset the broader pressure in the technology sector and other major stocks.
Under these conditions, the Hong Kong market remains under pressure as long as sentiment toward global technology stocks has not recovered. Investors will continue to monitor the movements of US megacap technology stocks, the prospects for AI trade, and the direction of foreign capital flows in Asian markets to determine whether the Hang Seng can stabilize in the short term. (asd)*
Source: Newsmaker.id
