The Hang Seng Index fell 437 points, or 1.5%, to 24,585 on Monday, extending last week’s selloff and marking its lowest close since March. The downturn was led by a broad pullback in technology and growth stocks, following a sharp global slump in AI-related shares as investors reassessed earnings prospects and the interest rate outlook in light of stronger-than-expected US economic data.
A robust US jobs report reinforced expectations that the Federal Reserve may keep borrowing costs elevated for longer, weighing on risk appetite across the region. Market sentiment was further hit by reports that Iran had fired missiles toward Israel, testing a fragile ceasefire and pushing oil prices higher.
In Hong Kong, technology, financial and retail trade stocks led the decline. Major laggards included Tencent (-1.2%), AIA (-1.0%), Kingboard Laminates (-5.3%), Lenovo (-5.1%) and Kuaishou Technology (-3.5%).
