Hormuz Shadows Hang Seng
Hong Kong stocks weakened on Monday (May 18th) as investors reduced risk amid renewed Middle East tensions. The Hang Seng Index fell 323 points, or 1.2%, to 25,640, its lowest level since April 2026.
Sentiment worsened after US President Donald Trump issued a new warning to Iran, sparking concerns about further escalation and potential disruptions to global energy supplies. The market assessed that this geopolitical risk could prolong volatility across assets.
Oil prices rose more than 1% amid concerns about shipping disruptions through the Strait of Hormuz, a key global energy trade route. The surge in oil fueled inflation concerns and raised expectations of corporate operating costs, dampening appetite for riskier assets such as equities.
On the stock exchange, financial and technology stocks led the decline. Tencent fell 0.3% and AIA fell 1.0%, while several other stocks, including Shenzhou International (-0.7%), HKEX (-0.1%), and SMIC (-0.8%), also declined.
Amid market pressure, Xiaomi rose nearly 1%, becoming an exception among large-cap stocks. Looking ahead, market participants are likely to monitor the direction of oil prices, US-Iran geopolitical developments, and their impact on global inflation and interest rate expectations.(asd)
Source: Newsmaker.id