FX.co ★ Hang Seng Marks Third Weekly Fall on Global Risks

The Hang Seng Index fell 223 points, or 0.9%, to close at 25,277 on Friday, extending its decline for a second consecutive session as most sectors retreated. Market sentiment remained cautious after global central bankers warned that the war in the Middle East could reignite inflation, while the IMF stressed that the impact would depend on the conflict’s duration and intensity. Technology and consumer stocks posted sharp losses, with property shares also weaker.

On a weekly basis, the index recorded a third straight decline, slipping 0.7% amid concerns that China may postpone new support measures until signs of more severe economic weakness emerge. The PBoC kept key lending rates at record lows for a tenth consecutive month in March, even as surging oil prices linked to the Iran conflict put Beijing on track to exit deflation earlier than anticipated. Losses were partially offset by data showing China’s youth unemployment rate fell to an eight-month low in February.

Among individual names, Xiaomi dropped 7.8%, followed by SMIC (-4.9%), China Unicom (-4.5%), and Sunny Optical (-3.5%). Traders are now awaiting Hong Kong’s February inflation data and the fourth-quarter current account figures due later today.