Hong Kong stocks closed lower in Tuesday’s trading (Aug 4) as investors turned cautious again regarding developments in the Middle East conflict. The Hang Seng Index fell 0.6%, or 156.48 points, to 25,852.92, while the Hang Seng China Enterprises Index declined 0.9% to 8,574.26.
Market sentiment soured after the United States and Iran issued conflicting statements regarding diplomatic efforts. This uncertainty heightened concerns over the security of the Strait of Hormuz, a vital global energy shipping route.
Oil prices rose again following reports of an attack on a vessel near this strategic waterway. These conditions raised investor fears that the conflict could disrupt energy supplies and increase global inflationary pressure.
The market is also assessing the outlook for artificial intelligence-related stocks following strong earnings reports from US technology companies. However, high stock valuations have made Hong Kong investors hesitant to buy aggressively.
HSBC shares fell about 1%, despite the company reporting a profit increase and results that beat expectations. HSBC posted first-half profit growth, raised its net interest income forecast, and resumed its share buyback program.
Newsmaker Analysis: The Hang Seng remains vulnerable to downward pressure as long as US-Iran uncertainty and the risk of disruptions in the Strait of Hormuz persist. Sentiment toward tech stocks may limit the decline, but the market requires geopolitical certainty and stronger corporate earnings to resume its rally.
Source: Newsmaker.id