At midday, Hong Kong's three major indices were all trading lower. The Hang Seng Index was down 1.38% at 23,088.87 points, the Hang Seng Tech Index declined 1.67%, and the Hang Seng China Enterprises Index fell 1.89%.
In terms of sector performance, technology and internet stocks were mostly lower. Shares of Bilibili Inc rose over 2%, while Alibaba Group Holding Ltd fell more than 4%. Xiaomi Corp and Baidu Inc dropped over 3%, and JD.com Inc declined more than 2%.
Semiconductor Sector Shows Strength
The semiconductor sector bucked the broader market downtrend, with shares of ASM Pacific Technology Ltd surging over 11%. The underlying logic of capacity expansion at domestic memory wafer fabs continues to be validated, with equipment and materials suppliers being the first to benefit. As production ramps up at facilities like Yangtze Memory Technologies Co. and ChangXin Memory Technologies, the domestic substitution process is entering a deeper phase. Leading equipment manufacturers such as NAURA Technology Group Co., Ltd. and Advanced Micro-Fabrication Equipment Inc. China are seeing improved order visibility, while precursor material suppliers like Jiangsu Yoke Technology Co., Ltd. are also gaining incremental market space. On another front, positive sentiment was reignited by overseas developments. In the early hours of the morning, Micron Technology reported quarterly earnings that exceeded expectations, with both revenue and guidance for the next quarter significantly surpassing market forecasts. Its share price surged over 10% in after-hours trading, lifting other U.S. semiconductor leaders like NVIDIA Corp and Advanced Micro Devices, Inc. higher.
Gold Stocks Under Pressure
Gold stocks were broadly lower, with shares of China Gold International Resources Corp. Ltd. falling more than 8%. Spot gold prices retreated below the $4,000 per ounce mark. Deutsche Bank revised its gold price forecast for the third quarter to $4,300 per ounce, a reduction of over one-fifth (22%) from its previous estimate. Its fourth-quarter forecast was also lowered by 17% to $4,800 per ounce. The bank cited increasing investor caution regarding the outlook for U.S. monetary policy and weakening investment demand for gold. However, even after these downward revisions, the new targets still imply potential upside from current levels near $4,140 per ounce, albeit with a notably less optimistic outlook than before.
Oil Stocks Extend Losses
Oil stocks continued their downward trend, with shares of CNOOC Ltd dropping over 2%. International crude oil prices remained under pressure, with U.S. WTI crude futures falling below the $70 per barrel psychological level to hit their lowest point since early March, retreating to levels seen before the outbreak of conflict involving Iran. Brent crude futures for August delivery also dipped below $73 per barrel. Markets are gradually pricing in the possibility of Iranian crude re-entering the global market and the resumption of normal traffic through the Strait of Hormuz. The U.S. Energy Secretary noted that over the past 24 hours, 72 vessels had passed through the Strait of Hormuz, transporting approximately 20 million barrels of crude oil—equivalent to about one-fifth of global daily consumption. He also stated that oil shipments would not be disrupted even if the preliminary agreement reached earlier this month were not sustained.
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