Hong Kong stocks fell in morning trading after US markets declined significantly Thursday, with the Hang Seng Index dropping 318 points to 24,891, surrendering the 25,000 level. US stocks faced sharp losses with the Dow falling 506 points or 0.97% to 51,711, the S&P declining 90 points or 1.21% to 7,408, and the Nasdaq dropping 553 points or 2.15% to 25,137. The declines stemmed from escalating Middle East tensions driving oil prices higher and concerns over capital expenditure increases at Alphabet and Tesla. The Hang Seng Index had closed Thursday at 25,210, up 318 points or 1.28%, but faced resistance at the 100-day moving average of 25,200, with turnover shrinking to 233.4 billion HKD and northbound capital recording net outflow of 4.226 billion HKD.
US Stocks Post Sharp Declines on Tech Sector Weakness
US stocks experienced significant selling pressure Thursday, with the VIX volatility index surging 22% to 20.31. Major technology stocks led the decline, with Tesla shares plunging 14.5% and Alphabet falling 7.1%, marking the worst performance among Dow components. The two companies saw combined market capitalization losses of approximately 500 billion USD. Meta declined 3.4% and Amazon dropped 4.6%. The "Magnificent Seven" tech index fell 4.8%, with collective market value losses totaling 797 billion USD.
Oil price increases intensified inflation concerns, pushing the US 10-year Treasury yield up 5.8 basis points to 4.715%. The 2-year yield, more sensitive to interest rate expectations, rose 6.4 basis points to 4.366%, reaching its highest level since early 2025. Germany's 10-year yield climbed 3 basis points to 3.21%, a new high since 2011. The US Dollar Index rose 0.41% to 101.54, while the Japanese yen declined 0.52% to 164 per USD, marking a 40-year low.
Hong Kong Stocks Retreat from 25,000 Level in Morning Session
The Hang Seng Index opened 278 points lower and fell as much as 369 points to 24,841, approaching the 10-day moving average at 24,800. The index traded around the 24,900 level during the morning session, closing the half-day at 24,891 points, down 318 points or 1.27%. The Hang Seng China Enterprises Index fell 94 points or 1.13% to 8,258, while the Hang Seng Tech Index declined 79 points or 1.69% to 4,619. Half-day turnover reached 117.122 billion HKD, with northbound capital recording net inflow of 531 million HKD.
Thursday's session saw the Hang Seng Index regain the 25,000 level with a 318-point or 1.28% gain to 25,210, but turnover continued to shrink to 233.4 billion HKD. Northbound capital recorded net outflow of 4.226 billion HKD, ending two consecutive days of inflows. The advance-decline ratio showed weakness, with technology and metals stocks weighing on the market.
Technical Levels Show Support at 24,650-24,750 Range
The 100-day moving average at 25,200 represents immediate resistance, with the 250-day moving average at 25,600-25,700 presenting stronger resistance above. Support levels are identified at the 50-day and 10-day moving averages in the 24,650-24,750 range. The 24,600 level marks a critical threshold, below which the 10-week and 20-month moving averages around 24,400 provide the next support zone. The 20-day moving average at approximately 24,000 represents a stronger support level that must hold to maintain the current market structure.
FAQ
What caused Hong Kong stocks to fall below 25,000?
Hong Kong stocks fell below 25,000 following sharp declines in US markets Thursday, where the Dow dropped 506 points, the S&P fell 90 points, and the Nasdaq declined 553 points. The Hang Seng Index dropped 318 points to 24,891 in morning trading, with technology and metals stocks leading the decline. Northbound capital recorded net outflow of 4.226 billion HKD on Thursday, and half-day turnover reached only 117.122 billion HKD.
Why did US stocks decline significantly Thursday?
US stocks declined due to escalating Middle East tensions driving oil prices higher and concerns over increased capital expenditure at Alphabet and Tesla. The Dow fell 506 points or 0.97% to 51,711, while the Nasdaq dropped 553 points or 2.15% to 25,137. Tesla shares plunged 14.5% and Alphabet fell 7.1%, with the two companies losing approximately 500 billion USD in combined market value. The VIX volatility index surged 22% to 20.31.
What are the key technical support levels for Hong Kong stocks?
The 50-day and 10-day moving averages in the 24,650-24,750 range represent immediate support for the Hang Seng Index. The 24,600 level marks a critical threshold, below which the 10-week and 20-month moving averages around 24,400 provide additional support. The 20-day moving average at approximately 24,000 represents stronger support that must hold. On the upside, the 100-day moving average at 25,200 presents resistance, with the 250-day moving average at 25,600-25,700 representing stronger resistance.
