Hang Seng Tech futures in Hong Kong indicate a 2.1% lower open

Hong Kong’s Hang Seng Tech Index futures are set to open 2.1% lower, extending a six-week losing streak as geopolitical tensions and weak risk appetite weigh on investor sentiment according to market analysis. The index closed at 26,060 on Monday, erasing prior gains amid broad sector weakness as reported. Rising Middle East tensions, including U.S. military warnings and escalating strikes, have heightened uncertainty, while Chinese automakers reported sharp February sales declines, reflecting Lunar New Year disruptions according to data.

The sell-off aligns with global market declines, as U.S. equities and precious metals retreated following a volatile week. The S&P 500 and Nasdaq fell 0.4% and 0.9%, respectively, while gold and silver slumped amid speculative unwinding as detailed in market reports. In Hong Kong, the Hang Seng Index dropped 2% to 26,850.33 earlier in the week, with tech-heavy components like Xiaomi (-5.2%) and Meituan (-4.6%) leading losses according to market analysis.

Technical analysis suggests a bearish outlook for the Hang Seng Tech Index, with moving averages and oscillators indicating a "strong sell" or neutral stance according to technical indicators. Investors are also cautious ahead of China’s February PMI data and Hong Kong’s January retail sales, which could further test market resilience as reported. Meanwhile, oil prices surged on Iran-UAE tensions, with West Texas Intermediate climbing 3% to $96.21 according to market data, adding to inflationary pressures ahead of the Federal Reserve’s rate decision.

Despite the selloff, some sectors showed resilience, including energy firms and Pop Mart, which gained 2.1% on expansion plans as reported. However, broader market fragility persists as traders balance geopolitical risks, earnings volatility, and central bank policy uncertainty according to market analysis.