Hong Kong Stocks Weaken on Interest Rate Pressure
Hong Kong stocks weakened on Tuesday (June 23rd), with the Hang Seng Index falling 0.3% to 23,766. This decline extended the correction from the previous session, when market participants remained cautious about the prospect of potentially prolonged high global interest rates.
Market sentiment was initially supported by easing geopolitical tensions. Signs of progress in peace talks between the United States and Iran helped hold oil prices near new lows. This condition also maintained appetite for riskier assets in several Asian markets.
However, the support from the easing oil price was not strong enough to lift the Hong Kong market. Investors are still monitoring the Federal Reserve's stance, which has signaled that borrowing costs could remain high for an extended period, as inflationary pressures have not fully subsided. This concern has caused market participants to remain cautious.
In addition to global factors, investors are also monitoring developments in the initial public offering (IPO) market in Hong Kong. Plans to release previously locked shares are also a concern, as they could increase selling pressure and increase market volatility in the coming weeks.
Among the stocks that weakened, Tencent fell 1.7%, Knowledge Atlas plunged 5.0%, and Xiaomi fell 2.7%. Meanwhile, several stocks managed to strengthen, such as SMIC, which rose 3.2%, Dongyue Group, which gained 3.2%, and Lenovo, which edged up 0.3%. This indicates that the market remains selective, with investors choosing stocks deemed more resilient amidst global uncertainty. (asd)
Source: Newsmaker.id
