Hong Kong stocks tumbled 667 points, or 2.5%, to 25,958 on the first trading day of March, hitting a six-week low and erasing the prior session’s gains. Risk sentiment deteriorated after U.S. equity futures fell sharply in response to President Donald Trump’s pledge to “avenge” the deaths of three service members and maintain combat operations in Iran. The renewed tensions stoked concerns over potential disruptions to oil shipments through the Strait of Hormuz, a critical global energy chokepoint. Caution was further reinforced as investors awaited the release of China’s February PMI data.
Losses in Hong Kong were partially cushioned by modest advances in mainland Chinese shares, amid growing expectations that the National People’s Congress, opening on March 4, could announce new policy support for technology, innovation, and domestic consumption. Nonetheless, declines were broad-based, with all major sectors finishing lower: consumer names fell around 1.9%, while financials slipped nearly 3%. Among the notable underperformers were SenseTime Group (-7.0%), Xiaomi (-4.0%), Cathay Pacific (-3.6%), Kuaishou Technology (-3.4%), AIA Group (-3.3%), and SMIC (-3.2%).
