Hong Kong stocks mark third weekly loss as oil volatility pressures sentiment
Hang Seng Index falls for a third week as investors weigh the US-Israel war on Iran, oil swings and corporate earnings
The Hang Seng Index fell 0.9 per cent to 25,277.32 at the close on Friday, down 0.7 per cent for the week. The Hang Seng Tech Index dropped 1.3 per cent.
On the mainland, the Shanghai Composite Index slid 1.2 per cent, closing below the 4,000-point mark for the first time this year, while the CSI 300 Index retreated 0.4 per cent.
Alibaba Group Holding tumbled 6.3 per cent to HK$123.70 after reporting a 67 per cent slump in quarterly earnings and sluggish revenue growth. Xiaomi sank 8.6 per cent to HK$33.20 after launching a new version of its electric vehicle.
Crude oil remained in focus as investors watched fuel prices for clues on whether the US-Israel war on Iran would thrust the world into stagflation or even a recession. Futures contracts on the fuel eased more than 2 per cent on Friday after Israel said it would no longer target energy infrastructure and Iran’s military capability had been degraded. Still, Brent oil traded above US$100 a barrel, a level unsettling investors over higher energy costs.
“The stagflation trade is weighing on the markets,” said Cheng Qiang, an analyst at Topsperity Securities. “The correction may extend and investors should keep a close eye on developments in the Middle East and domestic policies.”