Hong Kong stocks slump to 3-week lows on Middle East tensions, mood cautious ahead of China data dump

The Hang Seng Index hit its lowest since March 28 after Iran’s first-ever direct assault on Israeli territory sparked worries about oil prices and its impact on the rate cut view

China economic data due to be released this week includes first quarter GDP, March industrial production, retail sales and employment rate

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Screens showing the index and stock prices outside Hong Kong Exchange Square (HKEX) in Central. Photo: Sun Yeung

Published: 10:37am, 15 Apr 2024Updated: 4:57pm, 15 Apr 2024

Hong Kong stocks declined to three week-lows as rising geopolitical tensions dealt a further setback to investor sentiment already rattled by last week’s export data shock. The mood remained defensive ahead of a slew of economic data due to be released on Tuesday.

The Hang Seng Index declined 0.7 per cent to 16,600.46 at the closing of Monday trading, a level not seen since March 28. The Tech Index fell 0.9 per cent, while the Shanghai Composite Index added 1.3 per cent after Beijing issued measures aimed at curbing market volatility.

E-commerce group Alibaba Group slipped 1.7 per cent to HK$70.45, peer JD.com declined 1.2 per cent to HK$101.20, and Tencent retreated 1.6 per cent to HK$304.60. EV maker Li Auto slumped 1.4 per cent to HK$116.40 and Geely Auto lost 2.1 per cent to HK$9.26.

Risk appetite soured after Iran launched its first-ever direct assault on Israeli territory late Saturday in a major escalation of the long-running covert war between the regional foes.

A key set of economic data, including first quarter GDP, industrial production, March retail sales and employment rate will be released on Tuesday, which will provide clues about the recovery trajectory in the world’s second largest economy.