The Hang Seng fell 70 points, or 0.3%, to close at 23,718 on Thursday, retreating from a rally in the prior session as declines in tech and consumer sectors weighed on investor sentiment.
Hang Seng pares losses at finish
The index pulled back from its highest level in over three years, with the AI-driven tech surge, particularly fueled by startup DeepSeek, pausing after Nvidia’s earnings report failed to maintain momentum. Geopolitical concerns also pressured markets, particularly after China launched military drills near Taiwan, raising tensions in the region.
Investors await February PMI
Investors were also awaiting February's official PMI data from mainland China, with expectations that the Lunar New Year break may have slowed overall activity. The index managed to recover some of its early losses after reports surfaced that China plans to inject at least CNY 400 billion into its largest banks in the coming months to support economic recovery. This move helped ease some concerns over economic growth and provided a temporary boost to market sentiment.
New budget unveiled
In Hong Kong, the 2024-25 budget focused on government spending cuts, although it was noted that the cuts would have a limited impact on citizens' livelihoods. The budget also underscored AI investment as a key priority for future growth, reflecting the region's efforts to capitalize on emerging technologies. Despite the broader market's struggles, certain sectors, including technology, were hit hard. Xiaomi Corp. saw a significant drop of 6.1%, followed by China Unicom (-5.5%), Trip.com (-5.0%), and Kuaishou Tech (-3.8%), indicating broader concerns about the tech sector’s outlook amid global uncertainty.
