The Hang Seng Index weakened 102 points, or 0.4%, to 26,290 on Monday (May 11), reversing from initial gains as investor sentiment soured after US President Donald Trump rejected Iran’s latest peace proposal as “totally unacceptable.” The statement raised doubts about the chances of a more durable ceasefire in the Middle East conflict that has been going on for about 10 weeks.
Market concerns increased due to the perceived risk of shipping disruptions in the Strait of Hormuz being more prolonged. These concerns pushed oil prices sharply higher and depressed risk appetite in the region, causing Asian markets to remain on the defensive.
In Hong Kong, financial and technology stocks led the decline. Stocks weighing on the index included Tencent (-0.9%), Pop Mart (-1.8%), HKEX (-0.8%), Kuaishou (-3.6%), and Xiaomi (-1.3%).
Investors also tended to hold their positions ahead of the release of Hong Kong’s first-quarter GDP growth data this week. This data is being monitored for additional signals about the strength of the local economic recovery and the potential direction of market sentiment going forward. (asd)
Source: Newsmaker.id