Hong Kong stocks fell 124 points, or 0.5%, to 25,941 in early trading on Tuesday, extending losses into a second session and hovering near a six-week low. Sentiment was pressured by weaker U.S. futures and a sharp rise in oil prices, fueled by escalating tensions in the Middle East and Tehran’s threat to close the Strait of Hormuz, which reignited inflation concerns.
Bearish momentum was further reinforced by steep February sales declines among Chinese automakers, largely attributed to disruptions around the Lunar New Year holiday. All sectors in Hong Kong traded lower, tracking a pullback in mainland Chinese equities after recent gains, as investors awaited the release of China’s PMI data on Wednesday.
Despite the cautious tone, markets were still looking to this week’s parliamentary meetings in Beijing for potential new policy support to shore up the slowing economy. Among the notable laggards were Zijin Gold Intl. (-6.3%), Laopu Gold (-5.3%), China Hongqiao Group (-3.0%), Xpeng (-2.4%), Cathay Pacific Airways (-2.2%), and ZTO Express (-2.0%).
