Hang Seng Reverses Early Gains Ahead of U.S. Inflation Data

The Hang Seng Index slipped 0.7% to close at 25,117 on Thursday, retreating from two consecutive sessions of gains as market optimism faded amid renewed uncertainty over the potential de-escalation of the Middle East conflict. In an address, US President Donald Trump said the war in Iran was “very close” to completion and on track to meet its objectives within the next few weeks, but warned that military operations could intensify. Despite the hardline tone, he emphasized that diplomatic discussions remain ongoing, keeping investors cautious about the potential impact on global markets. The speech came after Trump claimed that Iran’s president had sought a ceasefire in the conflict, a statement Tehran swiftly denied. Most sectors traded lower, with notable declines from Tencent Holdings (-2%), Xiaomi Corporation (-3.9%), Semiconductor Manufacturing International Corp (-3.5%), and Zijin Gold International Company (-2.9%). The Hang Seng Index is closed on April 3 for the Easter holiday.

The Hang Seng Index rose 2.0% to close at 25,294 on Wednesday, rebounding from a two-day slump following a broader global equity recovery, supported by early signs of easing geopolitical tensions in the Middle East. Improving sentiment around a possible resolution to the Iran conflict lifted global markets after President Donald Trump indicated US forces could withdraw in the coming weeks, even without a formal agreement. All sectors traded in the green except energy, minerals, and miscellaneous. The sharpest gains were seen in biotech, shipping, and materials stocks, with buying interest across both cyclical and growth sectors. Individually, notable movers included Tencent Holdings (+2.5%), Pop Mart International (+0.97%), Knowledge Atlas Technology (+31.9%), Xiaomi Corporation (+0.7%), and Semiconductor Manufacturing (+4.5%).

The Hang Seng Index surged 1.8% to 25,230 on Wednesday, extending previous gains as improved global sentiment boosted regional markets following a strong rally on Wall Street overnight. Optimism mounted after President Donald Trump suggested U.S. military operations in Iran could wind down within two to three weeks, easing concerns over energy supply disruptions. Moreover, mainland stocks rebounding sharply after Tuesday’s retreat. All sectors in Hong Kong markets contributed to the upsurge, with property, financials, and consumers among top movers. However, strength was tempered by private survey data showing China’s factory activity slowed more than expected in March, reflecting a surge in energy costs and contrasting with official figures released earlier this week that signaled the strongest expansion in a year post-Spring Festival. Notable movers included Tencent Holdings (2.7%), Knowledge Atlas Technology (21.7%), Semiconductor Manufacturing (3.6%), and Xiaomi Corporation (0.6%).