Hang Seng drops 1.2% as tech stocks lead losses

The Hang Seng Index fell 1.2% to about HK$24,466 on June 8, extending a sell-off that began after the index peaked at HK$26,856 on May 14.

Technology stocks led the decline. Baidu lost about 7% and is roughly 30% below its high earlier this year. BYD Electronic fell about 5%. Meituan, Semiconductor Manufacturing International Corporation and Kuaishou Technology each declined nearly 4%. The Hang Seng Tech Index has dropped about 30% from its peak last year, while the Nasdaq 100 reached record highs.

The drop in Hong Kong coincided with weakness across Asia. South Korea’s KOSPI Composite fell more than 8%, its worst single-day performance in years. Japan’s Nikkei 225 slipped over 3%, with large technology-linked companies including SoftBank and Kioxia among the biggest decliners.

Investors adjusted positions on growing expectations of further US interest-rate increases. Official data showed the US added about 172,000 jobs in the previous month, and headline US consumer inflation for May is expected near 4.2%.

Geopolitical tensions kept oil prices elevated. Talks between the United States and Iran have shown limited recent progress, and Brent crude traded near $100 a barrel amid concerns about supply.

Technical indicators added pressure on the index. The Hang Seng moved below its 50-day exponential moving average and formed a head-and-shoulders pattern identified by market technicians. Near-term support levels sit around HK$24,465 and HK$24,400, with a lower target near HK$24,000 if those levels break.

Trading activity showed funds rotating away from long-running technology winners toward sectors and regions seen as less sensitive to higher rates and supply risks. The combination of monetary policy expectations and higher oil prices continued to influence flows across Asian equity markets.