Hong Kong Stocks Edge Higher

The Hang Seng Index climbed 269 points, or 1.1%, to 26,032 on Friday, bouncing after a brief pullback in the previous session as renewed Middle East de-escalation sentiment following reports that Israel signaled openness to negotiations with Lebanon helped restore risk appetite. The rebound was driven by broad-based buying across major sectors, with technology and financial stocks leading gains as investors rotated back into risk assets. However, sentiment remained fragile amid concerns over the Strait of Hormuz and wider regional tensions, which continued to influence oil prices and global risk appetite. Traders stayed cautious, warning that any escalation could quickly reverse recent equity gains and tighten financial conditions across Asia. Notable movers included Tencent Holdings (0.3%), H World Group (+0.2%), Shenzhen Xunlei Technology (+9.8%), Semiconductor Manufacturing International Corporation (+3.9%), and Xiaomi Corporation (+1.2%).

The Hang Seng Index fell about 0.5% to close at 25,752 on Thursday, retreating from the previous session’s rally as Asian markets turned cautious. Sentiment was weighed down by fragility and tensions in the Middle East, which continue to drive volatility in oil prices and raise concerns that inflationary pressures could persist longer than expected. Iran’s move to restrict shipping and impose tolls in the Strait of Hormuz, an essential global oil route has further unsettled markets, posing risks to global economic growth and equity performance. On the data front, China’s March CPI and PPI are due on Friday, with inflation expected to ease to 1.2% from 1.3% and PPI to rebound 0.4% after a 0.9% drop, with the data key for Hong Kong stocks as it signals mainland demand and pricing power shaping earnings prospect for China-linked firms. Only the technology, energy minerals, and utilities sectors posted gains. Notable laggards included Xiaomi (-4.3%), Sinotruk (-2.8%), and Kuaishou (-3.6%).

The Hang Seng Index edged up 776 points, or 3.1%, to close at 25,893 on Wednesday, marking its highest finish of the week, as broad-based buying swept through Hong Kong equities. Investor sentiment was lifted by news of a tentative two-week ceasefire between the United States and Iran, easing concerns over Middle East tensions that had recently weighed on markets. The rally extended beyond purely geopolitical relief, with a combination of lower oil prices, a strengthening yuan, and positive momentum in key Hong Kong sectors reinforcing investor confidence. Most sectors in Hong Kong stock market saw positive momentum, with financials and technology stocks leading the rally. Market movers included Tencent Holdings (+3.8%), Meituan Class (+9.97%), Xiaomi Corporation (+5.5%), Semiconductor Manufacturing (+10.2%), and Pop Mart International (+7.1%).