Hong Kong shares lost 202 points or 0.8% to 23,831 in Friday morning trade, marking the second straight session of losses amid escalating geopolitical tensions in the Middle East. Reports said Israel launched a strike on Iran early Friday, as U.S. efforts to revive a nuclear deal with Tehran remain stalled. Sentiment was further dented by a fresh tariff threat from President Trump, who suggested raising auto tariffs to spur investment at home, dragging U.S. stock futures lower.
The Hang Seng pulled back further from a near three-month high, pressured by concerns over a deepening price war among Chinese automakers. Auto stocks led falls, with Geely Auto down 2.0% and Li Auto falling 1.3%. Other major losers included Prada Spa (-4.5%), Sino Biopharma (-4.4%), and Sunny Optical Tech. (-2.5%). Still, the Hang Seng is on track for a second straight weekly gain, up about 0.2% so far, helped by signs of easing Sino-U.S. trade tensions after a trade framework was reached in London this week.
