Foreign Markets

Hong Kong share market finished session lower on Friday, 19 April 2024, as risk aversion selloff on concerns over worsening geopolitical conditions in the Middle East after reports of Israel striking Iran with missiles.

Risk appetite soured on Middle East tensions. Recent reports of an Israeli aerial bombardment targeting a key nuclear facility in central Isfahan have sparked a significant shift out of risk assets and into safe-haven investments. Iran?s state media said the country had activated its air defence system after reports of explosions near the Iranian city of Isfahan.

Also, selloff in the market fueled by US labour reports released overnight reaffirming bets interest rates would remain higher for longer. US Federal Reserve chairman Jerome Powell backed away from providing guidance on when rates may be cut, saying instead that monetary policy needs to be restrictive for longer.

At closing bell, the benchmark Hang Seng Index dropped 161.73 points, or 1%, to 16,224.14. The Hang Seng China Enterprises Index slid 57.25 points, or 1%, to 5,746.61.

Among blue chips, E-commerce group Alibaba tumbled 1.8% to HK$66.70 and food delivery platform Meituan slipped 2.5% to HK$95.30.

EV automakers were lower. Li Auto tumbled 7.4% to HK$106.30, as the cutthroat competition in the electric vehicle (EV) intensified after the vehicle maker priced its new model cheaper than Tesla?s bestseller model. Rival BYD declined 2% to HK$201.20 and Geely Auto lost 2.7% to HK$8.81.

Shares of upstream oil companies and gold producers were among gainers. CNOOC, China?s biggest offshore energy explorer, rose 2.1% to HK$18.78 and Zhaojin Mining added 1.3% to HK$12.92.

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