Hong Kong Stocks Fall as U.S.-Iran Hostilities Escalate; WuXi AppTec Gains on Buyback Plan
Hong Kong stocks declined on Wednesday as Iran and the United States engaged in their biggest exchange of hostilities since a ceasefire was agreed in April.The Hang Seng Index fell 0.6%, or 157.94 points, to close at 24,407.96, while the Hang Seng China Enterprises Index was little changed, slipping 5.86 points, to finish at 8,318.73.Iran's Revolutionary Guards said they launched missile and drone attacks on U.S. military facilities in Jordan, Kuwait, and Bahrain, describing the strikes as retaliation for Washington's recent attacks against Iranian targets near the Strait of Hormuz.The attacks followed comments by U.S. President Donald Trump that Iran had shot down an Apache helicopter near the strategic waterway a day earlier.Meanwhile, closer to home, China's producer price inflation accelerated to 3.9% in May from 2.8% in April, matching market expectations.Annual consumer inflation, however, remained at 1.2%, below the consensus forecast of 1.3%, while core inflation, which excludes food and energy prices, eased to 1.1% from 1.2% a month earlier.In corporate news, Laekna (HKG:2105) closed nearly 2% lower after granting Vasque Bio exclusive rights to develop and commercialize its cancer drug candidate LAE118 outside Greater China under a licensing agreement.WuXi AppTec (HKG:2359, SHA:603259) gained over 3% in Hong Kong after its board approved a proposed buyback of up to 1 billion yuan of A-shares.