The Hang Seng Index fell 285 points, or 1.1%, to 25,750 on Wednesday, ending a two-session rally as investors locked in profits after recent gains driven by optimism over artificial intelligence-related investments. Technology stocks, which had led the previous day’s advance, were at the forefront of the pullback, with financial and retail trade shares also under pressure.
Market sentiment turned more cautious amid rising geopolitical tensions in the Middle East, following reports that Iran’s Revolutionary Guards had attacked the U.S. Fifth Fleet headquarters, an airbase, and helicopters in a regional country. The news heightened concerns about regional stability and the risk of disruptions to global energy supplies.
Notable decliners included Tencent Holdings (-1.3%), Lenovo (-3.6%), Meituan (-1.2%), AIA Group (-0.2%), and Pop Mart International (-2.5%).
