Hong Kong Stocks Slightly Down 0.29% After Volatile Session; 'Three Oil Giants' Rally Amid Shrinking Volume

Hong Kong stocks opened lower on Thursday and weakened further in early trading, before recovering slightly in the afternoon to narrow losses. By the close, the Hang Seng Index had fallen 72.99 points, or 0.29%, to 24,761.13. The Hang Seng Tech Index dropped 17.94 points (0.41%) to 4,361.13, while the H-share Index declined 7.80 points (0.09%) to 8,266.01. Market turnover continued to shrink, with total main board trading volume falling to HK$159.55 billion.

Overall market sentiment remained cautious. Investors are closely watching the upcoming 'China-U.S. summit' amid concerns over potentially disappointing outcomes. Additionally, hawkish comments from Federal Reserve officials have dampened rate cut bets, while the A-share market's closure the following day further contributed to cautious capital flows.

On the upside, oil and shipping-related stocks defied the broader market weakness. Escalating Middle East tensions and Brent crude futures rising back above $103 per barrel drove capital into commodity-linked, high-dividend assets. All three major Chinese oil firms posted gains: PetroChina surged 2.83% to rank among top blue chips, CNOOC rose 2.14%, and Sinopec edged up 0.90%. The shipping and port sector also performed strongly, with COSCO Shipping Energy gaining 2.70%.

Major tech and internet stocks showed a mixed performance. SenseTime jumped 4.42%, Xiaomi rose 1.53% on new smartphone launch momentum, and Alibaba edged up 0.18% supported by its AI strategy and positive analyst views. Tencent slipped 0.59% but remained the most actively traded stock with HK$6.238 billion in turnover. Baidu and Trip.com fell over 2% to 3%.

Meanwhile, U.S. tech selloff pressure hit memory-related stocks, with Zhaoyi Innovation plunging 5.12%. Gold stocks also declined on rising interest rate expectations, with Zhufeng Gold tumbling over 8%.