Hang Seng Index Slumps as Tech Weakness and Geopolitical Tensions Weigh on Sentiment

The Hang Seng Index closed lower for the second consecutive session, dropping 245.87 points, or 0.95%, to finish at 25,679.78. The index traded within a range of 25,609.61 to 25,896.66, reflecting a broader trend of risk aversion across Asian markets as they prepare for Wednesday's open. The downturn was primarily fueled by a retreat in the technology sector and negative cues from Wall Street. Specifically, the NASDAQ's decline—triggered by reports that OpenAI missed user and revenue targets—put significant pressure on AI-related infrastructure and tech stocks in Hong Kong. This contagion was evident in the sharp drops of Xiaomi Corporation, which plummeted 3.79%, and Semiconductor Manufacturing, which plunged 3.22%. Conversely, energy stocks provided a partial hedge against the broader sell-off. CNOOC and PetroChina rallied 1.90% and 1.83% respectively, as West Texas Intermediate (WTI) crude for June delivery climbed to $99.81 per barrel. The surge in oil prices was driven by the ongoing U.S.-Iran stalemate, though some volatility occurred following reports of a revised peace plan from Iran. Market sentiment remains fragile as the lead from U.S. bourses remains weak. With the S&P 500 and NASDAQ both finishing in the red on Tuesday, the Hong Kong market is expected to face continued pressure. While some outliers like WuXi AppTec saw a significant jump of 13.57%, the prevailing trend is dominated by macroeconomic uncertainty and sector-specific headwinds in the tech space.