The Hang Seng Index extended its losses on June 18, with EV, real estate, and tech stocks coming under pressure.
Investor focus will remain on the Israel-Iran war, trade developments, and stimulus cues from Beijing. These factors could dictate whether the Hang Seng Index drops below 23,500 or retargets 24,000.
Hang Seng Index Slides as Middle East Tensions Heat Up
US equity markets trended lower on June 17, with the Nasdaq Composite Index falling 0.91%. An escalation in the Iran-Israel conflict impacted risk assets. The Hang Seng Index slid 1.2% to 23,693 in early trading on June 18. Mainland China’s markets also posted early losses, with the CSI 300 and Shanghai Composite Index dropping 0.32% and 0.46%, respectively.
EV and Tech Stocks Stumble
The escalation in the Iran-Israel conflict and concerns about crude oil supply disruption impacted demand for EV, real estate, and tech stocks. The Hang Seng Mainland Properties Index declined 2.27%. Tech giants Alibaba (09988) and Baidu (09888) dropped 2.61% and 1.70%, respectively, leaving the Hang Seng Tech Index down 1.46%.
EV stocks also moved lower, with BYD (01211) falling 0.39% while Li Auto (02015) tumbled 4.7%.
Iran-Israel War: US Jets Fuel Fears of Engagement
News of the US deploying fighter jets to the Middle East on June 17 raised concerns about US involvement in the Iran-Israel conflict. Overnight, President Trump called for Iran’s unconditional surrender while denying attempts to reach out to Iran for trade talks. Trump remarked:
