22.04.202602:06:17UTC+00Hong Kong Shares Slip on Middle East Tensions

The Hang Seng Index dropped 305 points, or 1.2%, to 26,180 on Wednesday, ending a two-day winning streak as investors turned more cautious against a mixed global backdrop. An extension of the US-Iran truce offered only modest support and failed to dispel uncertainty, with stalled negotiations and ongoing disruptions along key oil shipping routes weighing on risk appetite. Firming oil prices further heightened concerns about inflationary pressures and broader cost increases. Global signals were uneven: U.S. equity futures inched higher while crude prices held recent gains, underscoring divergent investor positioning. In Hong Kong, declines were led by major constituents including Tencent Holdings (-2.0%), Xiaomi Corporation (-1.3%), Semiconductor Manufacturing (-1.6%), Zhongsheng Group (-0.8%), and Hong Kong Exchanges & Clearing (-0.3%). Market participants also focused on inflation data due out tomorrow, which is expected to offer fresh guidance on interest-rate trajectories and global monetary policy expectations.