The Hang Seng Index fell 1.0%, or 257 points, to 24,691 on Friday, extending its decline for the week as escalating tensions in the Middle East and surging oil prices dampened risk appetite. Brent crude rose above US$109 per barrel after disruptions to key shipping routes heightened concerns over global energy supply. The jump in oil prices stoked inflation worries and strengthened expectations of further monetary tightening.
Global bond yields climbed, with the US 10-year Treasury yield approaching 5%, adding further pressure on equities ahead of the release of the US August CPI data and next week’s Federal Reserve policy meeting. Technology and financial stocks were among the main drags on the market. Chinese AI startup Moonshot was reportedly considering a dual listing in Hong Kong and Shanghai, even as Hong Kong–listed AI names underperformed. Major decliners included Tencent (-1.3%), MiniMax (-2.2%), SMIC (-2.6%), Xiaomi (-0.9%), and AIA Group (-0.9%).
