FX.co ★ Hong Kong Stocks Drop Toward 11-Month Lows

The Hang Seng Index fell 208 points, or 0.9%, to 24,350 on Wednesday, extending its decline to a sixth consecutive session and marking its lowest close since July 2025. Sentiment remained fragile amid escalating tensions in the Middle East and renewed selling in selected technology stocks.

The market came under further pressure following reports that US forces launched fresh strikes against Iran after the downing of an American helicopter, stoking fears of broader regional instability and jeopardizing a fragile ceasefire. Oil prices rebounded on concerns over potential supply disruptions.

At the same time, investors digested China’s latest inflation figures, which showed annual consumer price growth holding steady at 1.2% in May, unchanged from April. The data reinforced expectations that policymakers are likely to maintain or expand measures to support the country’s economic recovery.

Among the notable laggards were Lenovo (-5.2%), Xiaomi (-1.8%), HKEX (-0.7%), SMIC (-0.9%), and Knowledge Atlas Technology (-3.4%).