The Hang Seng Index slumped 518 points, or 2.0%, to close at 25,249 on Wednesday, extending its losing streak to a third session and hitting its lowest level since mid-December. Sentiment was dragged down by a pullback in U.S. stock futures, as escalating tensions in the Middle East fueled worries over a potential repricing of geopolitical risk, disruptions to energy logistics, and more persistent inflationary pressures.
Weakness on the mainland further weighed on the market after official data showed that China’s manufacturing activity contracted for a second consecutive month in February, with subdued domestic demand and investment overshadowing still-solid export performance. Some downside support came from expectations around possible policy signals at China’s annual parliamentary meeting, which opens today.
Losses in Hong Kong were broad-based, led by financial, property, and consumer names. Notable decliners included Minimax Group (-9.6%), Akeso Inc. (-5.1%), AIA Group (-5.0%), CITIC Ltd. (-4.5%), and MTR Corp. (-3.8%). In contrast, aluminum producers advanced as base-metal prices rose following the decision by a major Qatari smelter to suspend operations.
