Hong Kong Stocks Rises as China Resilience Supports Market

The Hang Seng Index climbed 0.3% to around 24,817 on Tuesday, rebounding from the previous session as gains in technology and consumer stocks lifted the broader market. The advance came despite persistent Middle East tensions, with investors engaging in bargain hunting after recent declines. Support also came from the relative resilience of Chinese equities, which have outperformed global peers since the Iran conflict began. Stability in domestic conditions, easing deflation pressures, and strength in renewable energy sectors helped improve sentiment, alongside more constructive views from global banks. The rebound tracked a modest recovery across regional markets, even as elevated crude prices and a stronger US dollar continued to weigh. Notable gainers included Zijin Mining (+3.5%), China Hongqiao (+3.7%), Akeso (+5.3%), Shenzhen Xunce Technology (+8.3%), and Geely Automobile (+0.8%).

The Hang Seng Index fell 0.8% to close at 24,751 on Monday, paring steeper losses earlier in the session, as gains in energy offset some of the declines in technology and consumer stocks. Still, sentiment remained weak among Asian markets amid escalating Middle East tensions, with reports that Iran-aligned Houthi forces in Yemen had entered the conflict. Brent crude is also heading for a record monthly surge, raising concerns over inflation and global growth, further weighing on sentiment. Across the course, BYD Company dropped 4.9% after reporting its first annual profit decline in four years, pressured by weaker domestic demand and forex losses. Other notable laggards included Tencent Holdings (-2.4%), Pop Mart International (-0.6%), Meituan Class (-2.0%), Xiaomi (-1.9%), and SMIC (-2.1%). In contrast, PetroChina rose 2.8% on elevated oil prices and expectations of stronger earnings, reaching a multi-week high.

The Hang Seng Index fell 1.5% to around 24,589 on Monday, mirroring widespread losses across Asian markets as escalating geopolitical tensions and rising oil prices weighed on sentiment. The Iran war entered its fifth week with no clear resolution, with Iran-backed Houthi militants in Yemen opening a new front and the United States reinforcing its military presence, raising risks of prolonged conflict and potential energy supply disruptions. Higher crude prices lifted inflation expectations, driving bond yields and the US dollar higher, which pressured equities across the region. Separately, tensions between China and the United States increased after Beijing protested a US advisory regarding Hong Kong’s expanded national security rules, adding uncertainty around the regulatory environment and foreign participation. Notable laggards included Tencent Holdings (-0.4%), Meituan (-0.9%), Pop Mart International (-0.7%), and Semiconductor Manufacturing International Corporation (-1.22%).