Hong Kong Stocks Fall with Asian Markets; Hang Seng Index Down 1.22%

(Central News Agency, Taipei, June 8) Affected by the sharp drop in US stocks last Friday, Hong Kong stocks extended their losing streak since last Wednesday, falling in tandem with Asian markets amid weakness in technology stocks. The Hang Seng Index closed at 24,657.06 points, down 304.89 points, or 1.22%, showing relative resilience compared to other Asian markets. However, with US market volatility and China's strengthened supervision of cross-border capital flows, Hong Kong stocks are likely to remain in consolidation.

According to reports from Hong Kong media, in addition to the 1.22% drop in the Hang Seng Index, the Hang Seng Tech Index, another key indicator, fell by 2.71%, and the Hang Seng China Enterprises Index also dropped by 1.1%. Trading volume reached HKD 363.975 billion (approximately TWD 1.46 trillion), an increase from the previous trading day. Southbound capital saw a net inflow of HKD 11.318 billion.

In terms of sectors, technology stocks generally performed poorly today, becoming the main group dragging down the Hong Kong market. Additionally, sectors such as non-ferrous metals, paper and packaging, and electrical equipment also showed weakness. In contrast, sectors like national defense and military, petrochemicals, and coal were relatively resilient, with some individual stocks even rising against the trend.

Analysts noted that the ongoing stalemate in US-Iran negotiations is keeping international oil prices high. While the likelihood of a major escalation in the US-Iran conflict is low, persistently high oil and shipping costs will impact corporate profits globally to varying degrees. Furthermore, the market's growing consensus on an interest rate hike by the US Federal Reserve (FED) is exerting pressure on US, Hong Kong, and global stock markets.

Additionally, China's recent tightening of supervision over cross-border capital flows has dealt a real and psychological blow to the Hong Kong market, which has been experiencing relatively weak liquidity, and will likely affect its future performance. (Editor: Chiu Kuo-chiang / Chen Yanjun) 1150608