The Hang Seng Index fell 1.0%, or 240 points, to 23,970 on Tuesday, pressured by renewed geopolitical tensions and broad-based weakness across Asian markets. Sentiment was further hit by softer US equity futures, after Wall Street declined overnight following President Trump’s pledge to reinstate a blockade on Iranian shipping through the Strait of Hormuz.
The escalation in geopolitical risk boosted risk aversion and pushed oil prices higher, encouraging investors to rotate into safer assets. At the same time, traders stayed cautious ahead of China’s June trade data, due later in the day, seeking fresh signals on the strength of the country’s economic recovery after stronger-than-expected export and import growth in May.
Investors were also awaiting upcoming US economic releases and central bank commentary that could shape the global market outlook. Among notable decliners were Tencent (-1.5%), Knowledge Atlas (-4.9%), Xiaomi (-0.5%), Meituan (-1.5%), and MiniMax (-3.1%).
