Hong Kong shares slipped 94 points or 0.4% to 23,431 in Monday morning trade, reversing gains from the previous session amid a sharp drop in U.S. futures as tensions in the Middle East escalated. The U.S. State Department issued a ‘worldwide caution’ alert after Tehran vowed retaliation following President Trump’s strikes on Iranian nuclear energy sites.
Cautious investors also digested China’s FDI data, which showed a 13.2% yoy decline in the first five months of 2025, despite a surge in high-tech sector investments. Still, further losses were capped by a surge in Hong Kong’s current account surplus, which rose to HKD 125.2 billion in Q1 2025 from HKD 95.3 billion in the prior year. Meanwhile, the city’s annual inflation rate eased to 1.9% in May, down from April’s three-month high of 2%. Consumer and technology stocks led the declines, while financials remained subdued. Some early decliners included China Longyuan Power (-3.5%), Techtronic Inds. (-2.5%), and Tencent Hlds. (-1.6%).
