The Hang Seng Index fell 305 points, or 1.2%, to 26,180 on Wednesday, snapping a two-session winning streak as investors turned cautious amid a mixed global backdrop. The extension of the US-Iran truce provided limited relief but did not fully ease uncertainty, with stalled talks and continued disruption to key oil shipping routes keeping risk sentiment subdued. Rising oil prices added concerns over inflationary pressures and broader cost impacts. Global cues were mixed, with U.S. equity futures edging higher while oil held recent gains, reflecting uneven investor positioning. In Hong Kong, losses were led by major laggards including Tencent Holdings (-2.0%), Xiaomi Corporation (-1.3%), Semiconductor Manufacturing (-1.6%), Zhongsheng Group (-0.8%), and Hong Kong Exchanges & Clearing (-0.3%). Investors also looked ahead to inflation data due tomorrow, which is expected to provide fresh signals on interest rate and global monetary policy expectations.
