The Hang Seng Index fell 1.1% to end at 25,328 on Wednesday, marking the lowest closing level since early April amid weakness in energy, technology services, and property stocks. This came despite a broader artificial intelligence rally as well as hopes that the Middle East conflict could be moving toward a resolution, with the US signaling progress toward a potential peace agreement despite fresh hostilities. Notable losses were seen from Tencent Holdings (-1.1%), CNOOC (-2.2%), Xiaomi (-4.6%), Meituan (-1.4%), and Sun Hung Kai Properties (-2.2%). Partly offsetting the decline were gains in Lenovo Group (4.5%) and Semiconductor Manufacturing International (1.0%). On the data front, China's industrial profits surged 24.7%, the biggest gain since November 2023, after a 15.8% growth in March, despite domestic headwinds and heightened global uncertainty.