23.04.202602:04:37UTC+00Hong Kong Stocks Edge Lower on Cautious Sentiment

The Hang Seng Index declined 202 points, or 0.8%, to close at 25,950 on Thursday, erasing gains from the previous session as investors took profits and turned more cautious ahead of key macroeconomic releases. Market sentiment was shaped by a mixed global backdrop. In the US, equities drew support from robust corporate earnings and improving risk appetite, but regional markets were more subdued as investors assessed geopolitical risks stemming from the US–Iran standoff and its potential implications for energy flows through the Strait of Hormuz. Persistently elevated oil prices continued to stoke inflation concerns, tempering risk appetite across Asian markets.

Locally, investors are focused on Hong Kong’s March inflation figures, due later in the session, which could provide fresh insight into underlying price pressures and help recalibrate expectations for the monetary policy outlook. On the downside, notable underperformers included Tencent Holdings (-1.3%), AIA Group (-1.1%), Geely Automobile (-3.2%), Xiaomi Corporation (-1.5%), and Anta Sports (-1.1%).