Hang Seng Index sinks 2.4% to cap worst week since April on renewed AI bubble fears
Hong Kong stock benchmark’s loss of 5.1 per cent for the five-day period is the most since April 11
The Hang Seng Index closed 2.4 per cent lower at 25,220.02, taking the loss for the week to 5.1 per cent, the worst since April 11, when US President Donald Trump’s tariff war rattled the market. The Hang Seng Tech Index fell 3.2 per cent. On the mainland, the CSI 300 Index dropped 2.4 per cent and the Shanghai Composite lost 2.5 per cent.
Among the major losers, search-engine giant Baidu slumped 5.8 per cent to HK$107.30 and home-grown chipmaker SMIC slid 6.4 per cent to HK$68.80. E-commerce firm Alibaba Group Holding lost 4.7 per cent to HK$147.60 and online travel-booking agency Trip.com retreated 3 per cent to HK$537.50, online-game provider NetEase slipped 3.8 per cent to HK$204.60.
Smartphone and carmaker Xiaomi added 1 per cent to HK$38.08. Mainland developer Longfor Group Holdings advanced 1.4 per cent to HK$9.90, following media reports that the Chinese government was mulling a slew of measures to aid the ailing real estate sector. These include providing mortgage subsidies to first-time homebuyers and lowering transaction costs.
Overnight in the US, the S&P 500 Index fell 1.7 per cent, while the Nasdaq lost 2.2 per cent. The pullback underscored a sharp reversal in sentiment as worries about stretched AI valuations and heavy tech spending overshadowed Nvidia’s upbeat forecast, with the chipmaker sliding 3.2 per cent.
Persistent uncertainty over whether the Federal Reserve will cut rates next month also weighed on risk appetite after recent comments from policymakers signalled caution about easing too quickly.