Good day, traders!
What you need to know: Hong Kong stocks retreated on Thursday morning as geopolitical jitters intensified following US President Donald Trump’s declaration of "overwhelming victories" in Iran alongside threats of further military action. The hawkish rhetoric from Washington has dampened risk appetite across Asia, overshadowing local corporate developments.
The Hang Seng Index declined 1.01 per cent to 25,038.55 at 9.45am. Market sentiment was further weighed down by overnight losses on Wall Street, where the Dow Jones Industrial Average fell 0.5 per cent and the S&P 500 Index slid 0.3 per cent.
On the mainland, the CSI 300 Index and the Shanghai Composite Index also faced downward pressure. Regionally, Japan’s Nikkei 225 and South Korea’s Kospi mirrored the cautious tone, while Australia’s S&P/ASX 200 traded lower as investors weighed the potential for a broader conflict in the Middle East.
Tech heavyweights led the decline in Hong Kong, with e-commerce giant Alibaba Group Holding slumping 3.10 per cent to HK$118.90 and search-engine operator Baidu dropping 1.00 per cent to HK$108.50. Meituan slid 2.75 per cent to HK$79.70, while short-video platform Kuaishou Technology fell 2.38 per cent to HK$45.10. Electronics leader Xiaomi also struggled, retreating 2.87 per cent to HK$31.10.
In other sectors, energy stocks provided a rare bright spot as crude prices reacted to Middle East tensions; PetroChina advanced 1.80 per cent to HK$10.74 and CNOOC added 0.89 per cent to HK$27.20. However, the property and consumer sectors remained weak, with China Resources Land falling 2.19 per cent to HK$28.52 and sportswear maker Li Ning dropping 1.66 per cent to HK$21.36.
