Hang Seng Index falls 1.7% to break below 24,000 on tech slump

The Hang Seng Index fell 1.7% to below 24,000 at the midday break, led by technology heavyweights as mixed regional sentiment followed the US-Iran deal signing.

"Hong Kong equities are underperforming regional peers as profit-taking in tech names outweighs the positive catalyst from lower oil prices," said Kevin Ip, equity strategist at Edgen.

The Hang Seng Tech Index dropped 1.38%. Alibaba Group (9988.HK) and Xiaomi Corp. (1810.HK) each fell more than 3%, while JD.com (9618.HK) and Meituan (3690.HK) declined over 2%. In contrast, memory concept stocks rallied, with GigaDevice Semiconductor gaining nearly 7% and Montage Technology rising more than 5%. The Southern 2x Leveraged SK Hynix ETF surged almost 12%.

The divergence between Hong Kong and other Asian markets — where Japan's Nikkei 225 surged 1.9% to a record 71,233 and South Korea's Kospi added 0.6% — shows the selective nature of the post-deal rally. With Brent crude sliding to $78.31 a barrel, the inflation relief has yet to translate into broad-based buying in Hong Kong, leaving the Hang Seng Index vulnerable to further downside if tech selling intensifies.

The Shanghai Composite Index was flat, while the Shenzhen Composite gained 0.97%. Australia's S&P/ASX 200 lost 0.46%. The dollar held steady against the yen at 160.6250. Oil prices extended their decline after the US and Iran signed a memorandum of understanding to end hostilities, with the deal waiving US-backed sanctions on Iran and allowing Tehran to resume crude exports. Brent crude has fallen from above $100 a barrel during the conflict to below $80, easing inflation pressures globally. The Federal Reserve held its benchmark rate steady at Kevin Warsh's first meeting as chair, while the Bank of Japan raised rates to their highest level since 1995.

This article is for informational purposes only and does not constitute investment advice.