09.04.202602:05:56UTC+00Hong Kong Stocks Retreat

The Hang Seng Index slipped about 0.6% to 25,749 on Thursday, giving back part of the previous session’s gains as Asian markets turned more cautious. Risk sentiment was pressured by ongoing instability and rising tensions in the Middle East, which continue to fuel volatility in oil prices and heighten concerns that inflationary pressures could prove more persistent than anticipated.

In particular, Iran’s decision to restrict shipping and impose tolls in the Strait of Hormuz—one of the world’s most critical oil transit routes—has further unsettled investors, amplifying perceived risks to global economic growth and equity market performance.

On the data front, attention is focused on China’s March CPI and PPI figures, due Friday. Consensus expectations point to headline inflation easing to 1.2% from 1.3%, while producer prices are forecast to rebound 0.4% following a 0.9% decline. These readings will be closely watched in Hong Kong, as they provide key signals on mainland demand and corporates’ pricing power, both of which are critical for the earnings outlook of China-related companies.

Most sectors finished in negative territory. Notable early decliners included Sinotruk (-3.6%), Green Tea (-2.8%), Xiaomi (-2.6%) and Kuaishou Technology (-2.9%).