Hong Kong Stocks Retreat Amid Global Tech Selloff

Hong Kong Stocks Retreat Amid Global Tech Selloff

The Hang Seng Index slipped 1.0%, or 250 points, to 24,765 on Friday, tracking a broad decline across Asian markets after a selloff in US semiconductor stocks weighed on investor sentiment and reignited concerns over elevated valuations in artificial intelligence-related companies.

The weakness followed overnight losses on Wall Street, where technology shares retreated amid growing skepticism over whether substantial AI-related capital spending will generate sufficient returns to justify current market valuations.

Risk appetite was further dampened by higher oil prices, fueling inflation concerns and reinforcing expectations that central banks may remain cautious about easing monetary policy.

Investors also stayed on the sidelines ahead of upcoming US economic data and corporate earnings reports.

Notable laggards included Knowledge Atlas (-14.9%), Tencent (-1.0%), SMIC (-4.1%), Kingboard Laminates (-5.8%), and Lenovo (-2.3%).

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