Hang Seng Falls, Nvidia & Iran Drive Risk-Off
The Hang Seng Index closed lower on Thursday (February 26th), dragged down by shifting global sentiment after US stock futures fell following a less-than-enthusiastic market response to Nvidia's performance report. Pressure was further exacerbated by rising geopolitical tensions ahead of the next round of US-Iran nuclear talks, prompting investors to reduce risk exposure.
Regionally, mainland Chinese stocks tended to move cautiously as market participants awaited China's annual legislative meeting in March. This "wait-and-see" attitude curbed buying appetite, particularly in policy-sensitive sectors.
However, the Hang Seng's downside was limited due to the support of the fiscal narrative from Hong Kong. The government projected a return to budget surplus after several years of deficit, supported by increasing revenue—including from capital market activities and transaction-related duties.
The technology and consumer sectors were the main pressures, while weakness in the financial and property sectors tended to moderate ahead of the release of the next period's business activity data (PMI). In China's property market, the easing of home purchase regulations—including for non-residents in Shanghai—signals continued efforts to stabilize the sector, but is not yet enough to reverse daily sentiment.
On the other hand, shares of exchange operator HKEX (Hong Kong Exchange) were relatively resilient after reporting strong earnings performance, in line with the recovery in listing and trading activity. This factor helped cushion the overall index pressure, despite declining global risk appetite.
Source: Newsmaker.id
