Hong Kong Markets Bounce Back from Near 8-Month Low

Hong Kong’s stocks climbed 305 points, or 1.3%, to 24,686 in Tuesday morning trade, snapping a three-day losing streak as bargain hunters stepped in after the market hit a near eight-month low. The rebound tracked gains across Asia after U.S. President Donald Trump postponed strikes on Iran’s power grid, easing fears of a deeper energy shock. Sentiment also improved after China's Premier Li pledged to boost imports of high-quality foreign goods and promote balanced trade, while PBoC Governor Pan Gongsheng sought to calm concerns over China’s trade surplus. Still, caution lingered ahead of February trade data in Hong Kong, following December’s swing to a deficit. Financials and property stocks led the upturn, with Laopu Gold surging nearly 10% on stronger-than-expected Q1 results. Zijin Gold Intl. added 2% on higher sales and prices, while China Hongqiao jumped 4.2% on aluminum optimism. Other top movers were China Resources Beer (5.2%), Pop Mart Intl. (4.3%), and SITC Intl. (3.6%).

Equities in Hong Kong tumbled 895 points, or 3.5%, to close at 24,382 on Monday, marking its biggest one-day drop since April 7 last year, as rising tensions in the Middle East triggered a sharp risk-off move and revived stagflation concerns. Tensions intensified after US President Donald Trump warned of potential strikes on Iran’s power infrastructure, prompting Tehran to threaten retaliation against regional energy systems, raising uncertainty over the outlook of energy prices. Analysts caution that higher input costs could pressure corporate profitability and weigh on jobs, while a sharp slowdown in global demand would pose further risks to China’s exports and broader economic growth. Among notable laggards, Laopu Gold slumped 8.6% and Zijin Mining Group fell 5% as bullion prices dropped sharply, while Alibaba Group Holding and Tencent Holdings also declined. In contrast, newly listed firms saw gains, with FS.com jumping on debut and Nsing Technologies posting solid early advances.

The Hang Seng index dropped more than 3% to around 24,500 on Monday, hitting its lowest level since August 2025, as escalating tensions in the Middle East triggered a broad risk-off move across global markets. Now in its fourth week, the war has kept investors on edge amid increasingly aggressive rhetoric and no clear path to de-escalation. Iran warned it could strike regional energy infrastructure if US President Donald Trump follows through on threats to target its power grid should the Strait of Hormuz remain closed, heightening fears of supply disruptions and a prolonged conflict. In turn, elevated oil prices have fueled inflation concerns and raised expectations for interest rate hikes from major central banks. All Hong Kong sectors retreated, led by property, financials, and tech. Notable laggards included AIA Group (-6.2%), SMIC (4.1%), and Sun Hung Kai Properties (-4.8%). Zijin Mining also dropped 5.4% after announcing it had taken control of Chifeng Gold.