Hang Seng Drops, Market Holds Risk Ahead of Trump–Xi Results
Hong Kong stocks weakened on Friday (May 15), with investors returning to caution despite Wall Street hitting a record high overnight thanks to an AI rally and strong US corporate earnings. The Hang Seng Index fell 205 points, or 0.8%, to 26,180, after closing flat in the previous session.
Sentiment was weighed down as the market awaited concrete results from the Trump–Xi summit in Beijing. Market participants tended to hold aggressive positions, despite optimism that US–China relations could improve, given the lack of clear policy details.
On the macro front, rising oil prices, heading for a weekly increase, added another layer of risk. Tensions around the Strait of Hormuz raised concerns about supply disruptions, which could amplify inflationary pressures and increase the risk of a global growth slowdown.
The Hang Seng's decline was led by pressure in financial and technology stocks. Some stocks that weakened included Mao Geping Cosmetics (-5.5%), CARsgen Therapeutics (-6.5%), Tencent (-0.3%), Kuaishou (-0.2%), and Laopu Gold (-1.0%).
Amid the broad weakness, Semiconductor Manufacturing International Corporation (SMIC) rose 6.2%, standing out as a limited support for sentiment in the semiconductor sector. The market is now monitoring two main catalysts: clarity on the Trump-Xi outcome and the direction of energy risks from Hormuz, which could impact inflation and regional risk appetite. (asd)
Source: Newsmaker.id
