Hong Kong Shares Jump on Two-Week Iran Ceasefire

The Hang Seng Index climbed 707 points, or 2.4%, to 25,725 on Wednesday, bouncing back from a 0.7% drop in the previous session and reaching this week’s highest level. Broad gains across sectors lifted the market as investor confidence improved following a two-week ceasefire agreement between the United States and Iran, which helped ease concerns over military disruptions and reopened the Strait of Hormuz. The deal also contributed to a decline in crude oil prices and supported a rebound Asian equity. Locally, the market opened after the Easter holidays with renewed focus on structural drivers such as a surge in IPO activity in Hong Kong, where more than 40 companies have completed listings this year. Financials, technology, and consumer stocks led the rally, with Shanghai Iluvatar CoreX (17%), Knowledge Atlas Tech (16%), and Jiaxin Intl Rscs Invt (15%). Meanwhile, the early laggards included CNOOC (-3.7%), RemeGen (-2.9%), and SC Kelun-Biotech Biopharm (-2.8%).

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 (-3.5%), and Zijin Gold International (-2.9%). The Hang Seng Index is closed on April 3-7 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%).