The Hang Seng Index slipped 0.3% to 23,766 on Tuesday, extending the previous session’s decline as worries over global interest rates outweighed support from easing geopolitical tensions. Risk sentiment drew some support from signs of progress in US–Iran talks, which helped keep oil prices near recent lows and underpinned appetite for risk across Asian markets.
Still, investors stayed cautious after the Federal Reserve signaled that borrowing costs may remain elevated for longer in response to persistent inflation pressures. Regional market tone was mixed, with equities lacking clear direction after Wall Street ended mostly lower despite a sharp pullback in crude prices.
Participants also tracked developments in Hong Kong’s IPO pipeline and the impending expiry of share lock-up periods, both of which could contribute to higher volatility in the coming weeks.
Among notable decliners, Tencent (-1.7%), Knowledge Atlas (-5.0%), and Xiaomi (-2.7%) retreated, while SMIC (+3.2%), Dongyue Group (+3.2%), and Lenovo (+0.3%) posted gains.
