Hang Seng Sinks to 3-Week Low on Mideast Tensions, Fed Signals
The Hang Seng tumbled 473 points or 2.0% to close at 23,238 on Thursday, marking its third consecutive loss and moving closer to a three-week low amid broad-based declines.
Sentiment soured as U.S. futures fell sharply on reports that senior American officials are preparing for a potential strike on Iran, raising fears of direct U.S. involvement in the Israel-Iran conflict. Geopolitical uncertainty was further compounded by lingering tariff concerns, with Fed Chair Powell cautioning that inflation risks remain "meaningful."
While markets still expect two rate cuts in 2025, the central bank signaled fewer reductions for next year.
Investors also grew cautious ahead of the PBoC’s upcoming decision on key lending rates, following a record-low cut in May. Losses were partially offset by hopes that China’s top legislature could propose fresh stimulus measures during its early July session. Biggest laggards included Pop Mart (-5.7%), JD Health (-5.0%), Trip.com (-4.1%), and Meituan (-3.8%).
Source : Trading Economics
