Hong Kong Stocks Under Pressure as Technology Stocks Slide

Hong Kong Stocks Under Pressure as Technology Stocks Slide

The Hang Seng Index tumbled 0.8%, or 200 points, to around 24,065 on Tuesday, as a selloff in technology stocks on Wall Street extended into Asia, with investors reducing exposure to artificial intelligence-related shares amid concerns over stretched valuations and the returns on heavy AI spending.

Brent crude climbed to around US$105.90 per barrel amid concerns over Middle East supply disruptions and uncertainty surrounding the Russia-Ukraine energy truce, reigniting inflation concerns and reinforcing expectations that global interest rates could remain elevated for longer.

Electronic and health technology stocks led the decline with Tencent (-0.3%), Genscript Biotech (-12.4%), Kingboard Laminates (-5.6%), Z.AI Co. (-5.3%), and Lenovo (-4.6%) among the notable laggards.

Investors also looked to upcoming quarterly earnings reports for indications of corporate margins and underlying demand, while assessing whether AI-related spending could deliver sustainable returns.