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Hong Kong Stocks Hit 5-week Low

The Hang Seng Index fell 0.8%, or 210 points, to around 25,105 on Wednesday, extending losses for a third session as escalating US-Iran tensions triggered a broad risk-off move across Asian markets. Renewed US airstrikes on Iran and retaliatory attacks raised fears of further disruptions around the Strait of Hormuz, pushing Brent crude above $95 a barrel and WTI above $91. Higher energy prices revived inflation concerns and pushed the US 10-year Treasury yield to 4.798%, while markets raised the probability of a Reserve rate hike. Meanwhile, Shein shares slipped 0.45% to HK$48.28 on their second day of trading after falling as much as 10% during Tuesday’s debut, signaling cautious investor reception to the long-awaited IPO. The stronger US dollar and rising borrowing costs added to pressure on Hong Kong’s rate-sensitive and technology-heavy equities. Notable laggards included Cathay Pacific (-5.0%), Tencent (-1.3%), Z.AI Co. (-6.0%), Lenovo ( -1.2%), and MiniMax (-1.1%).

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