Hong Kong Stocks Edge Higher

The Hang Seng Index rose 81 points, or 0.3%, to 26,442 on Tuesday, extending gains for a second session as sentiment improved on signs of possible diplomatic progress in the Middle East. Optimism grew after reports that Iran may join talks with the United States ahead of a ceasefire deadline, easing geopolitical concerns. Meanwhile, declining crude oil prices further supported equities by tempering inflation worries and lowering cost pressures for firms. Still, gains were capped as investors stayed cautious, closely tracking developments in negotiations and broader global risks. Uncertainty surrounding the durability of a ceasefire continued to limit stronger upside, leaving markets sensitive to incoming headlines. Among the top performers were Tencent Holdings (+0.1%), Shenzhou International (+1.0%), Meituan Class (+1.2%), Xiaomi Corporation (+0.3%), and Pop Mart International (+0.8%).

The Hang Seng Index rose 200 points, or 0.8%, to close at 26,361 on Monday, recovering from early volatility as investors weighed mixed global trade signals against rising geopolitical uncertainty. Chinese equities climbed to a one-month high after the central bank kept key lending rates unchanged and introduced additional market-supportive measures, boosting confidence in policy stability and lifting sentiment. However, gains were tempered by caution amid escalating Middle East tensions, with concerns over potential disruptions to shipping in the Strait of Hormuz and ongoing strain in US-Iran relations. On Sunday, President Donald Trump said American naval forces intercepted and took control of an Iranian-flagged cargo vessel in the Gulf of Oman after it attempted to bypass a blockade, an incident Tehran condemned as a violation of the ceasefire. Notable movers included Tencent Holdings (2.4%), Xiaomi Corporation (1.0%), Pop Mart (1.1%), and Semiconductor Manufacturing (0.8%).

The Hang Seng Index dropped 234 points, or 0.9%, to close at 26,160 on Friday, halting a three-day winning streak as sentiment turned cautious over prospects for a lasting US-Iran ceasefire deal. Market mood was shaped by reports that US President Donald Trump expressed confidence in an early resolution to the conflict, suggesting Iran had agreed to key conditions including scaling back its nuclear ambitions and reopening the Strait of Hormuz. He also announced a 10-day ceasefire between Israel and Lebanon, viewed as part of broader efforts to support further negotiations with Tehran. Despite these developments, investors remained wary of implementation risks, with the lack of clarity over a lasting agreement keeping risk appetite in check, prompting profit-taking after recent gains as energy prices fluctuated and geopolitical uncertainty persisted. Major laggards were Tencent Holdings (-1.3%), Meituan Class (-2.4%), Xiaomi Corporation (-0.2%), Pop Mart (-3.5%), and AIA Group (-3.2%).