The Hang Seng Index fell 1.3%, or 324 points, to 24,877 on Friday, erasing part of the previous session’s gains as surging oil prices and renewed geopolitical tensions weighed on risk appetite. Brent crude rose above $100 a barrel for the first time in two months after intensified Houthi attacks on vessels in the Red Sea stoked supply concerns, while President Donald Trump’s threat to expand strikes on Iran further unsettled markets.
Sentiment was additionally pressured by a technology-led selloff on Wall Street and higher US Treasury yields, which strengthened expectations that the Federal Reserve may keep interest rates elevated for longer. Providing some support, China’s central bank injected the largest amount of liquidity in five months into the financial system via its medium-term lending facility, bolstering hopes for further policy measures to underpin economic growth.
Among notable decliners were Tencent (-2.2%), AIA (-1.5%), Xiaomi (-0.7%), Meituan (-2.0%), and Kingboard Laminates (-2.7%).
