The Hang Seng Index declined 0.8%, or 210 points, to around 25,105 on Wednesday, marking a third consecutive session of losses as escalating US–Iran tensions triggered a broad risk-off move across Asian markets. Renewed US airstrikes on Iran and retaliatory attacks heightened concerns over potential disruptions in the Strait of Hormuz, driving Brent crude above $95 per barrel and WTI above $91. The surge in energy prices reignited inflation worries and pushed the US 10-year Treasury yield to 4.798%, while markets raised the odds of another Federal Reserve rate hike.
In Hong Kong, Shein slipped 0.45% to HK$48.28 on its second day of trading, after dropping as much as 10% during Tuesday’s debut, underscoring a cautious investor response to the long-awaited IPO. A stronger US dollar and rising borrowing costs further weighed on Hong Kong’s rate-sensitive and technology-heavy stocks. Notable laggards included Cathay Pacific (-5.0%), Tencent (-1.3%), Z.AI Co. (-6.0%), Lenovo (-1.2%), and MiniMax (-1.1%).
