The Hang Seng Index fell approximately 1%, or 259 points, to 25,390 during Wednesday’s trading (August 12). Pressure stemmed from fading hopes for a US-Iran deal and investor caution ahead of the release of US inflation data.
A rise in oil prices to a one-week high also weighed on sentiment. Tensions around the Strait of Hormuz reignited concerns regarding inflation and global growth, while a decline on Wall Street during the previous session added pressure to Asian markets.
Hong Kong technology stocks remained a primary drag on the market. Investors are now awaiting Tencent’s second-quarter earnings report to gauge developments in its gaming, advertising, and AI investment businesses. Tencent shares fell about 2.3%, while Kuaishou dropped 1.6% and Meituan declined 2.3%.
Meanwhile, plans to expand the Hang Seng Tech Index from 30 to 50 constituents are attracting attention, as this could increase the index’s exposure to emerging sectors such as artificial intelligence and robotics.
Hong Kong’s IPO market also remains in the spotlight. Shein is reportedly preparing for a listing in Hong Kong, a move that could help sustain optimism regarding the city’s capital market activity.
Newsmaker Analysis: The Hang Seng remains under pressure as long as tech stocks fail to recover and geopolitical risks stay elevated. US CPI stands as the next major catalyst. Cooler inflation could help improve sentiment toward growth and tech stocks, whereas a hot CPI reading could strengthen the dollar and bond yields, prolonging the pressure on the Hang Seng. (asd)
Source: Newsmaker.id