Hong Kong Shares Slip as Trump Rejects Iran Peace Offer

The Hang Seng Index fell 102 points, or 0.4%, to 26,290 on Monday, reversing earlier gains as investor sentiment weakened after US President Donald Trump rejected Iran’s latest peace proposal as “totally unacceptable,” casting doubt on efforts to secure a lasting ceasefire in the 10-week Middle East conflict. The remarks heightened concerns over prolonged disruptions to shipping through the Strait of Hormuz, pushing oil prices sharply higher and dampening risk appetite across the region. In Hong Kong, finance and technology services shares led losses. Notable laggards included Tencent Holdings (-0.9%), Pop Mart (-1.8%), Hong Kong Exchanges and Clearing (-0.8%), Kuaishou Technology (-3.6%), and Xiaomi Corporation (-1.3%). Investors also remained cautious ahead of the release of Hong Kong’s first-quarter GDP growth data later this week, which could offer fresh signals on the strength of the city’s economic recovery.

The Hang Seng Index fell by 233 points, or 0.9%, to close at 26,394 on Friday, reversing gains from the previous sessions as renewed tensions in the Middle East dampened investor sentiment. The US and Iran exchanged fire in the Strait of Hormuz, with both sides accusing each other of initiating the attack, raising fears of further escalation in the region and potential disruption to global energy shipping routes. Locally, a risk-off tone was evident across sectors, as investors engaged in profit-taking and scaled back exposure to equities. Notable laggards included Tencent Holdings (-1.3%), AIA Group (-2.9%), SMIC (-4.4%), Deepxi Technology (-9.2%), and Meituan Class (-0.2%). In contrast, Kuaishou and Pop Mart International outperformed the broader market, rising 9.4% and 3.6%, respectively. Separately, Hong Kong Exchanges and Clearing proposed reviving gold futures to strengthen risk-management tools amid rising geopolitical uncertainty and demand for hedging.

The Hang Seng Index surged 413 points, or 1.6%, to close at 26,626 on Thursday, its highest level since February 2026, extending gains from the previous session as easing geopolitical tensions lifted investor sentiment. Market optimism strengthened after reports suggested the US and Iran were moving closer to a deal to end hostilities, fueling a rally in global equities and pushing Wall Street benchmarks to fresh record highs overnight. Oil prices also steadied as Tehran assessed a new US proposal aimed at ending the war, easing concerns over prolonged supply disruptions and inflationary pressures. In Hong Kong, most sectors traded higher, with only the energy minerals sector declining. Gains were led by tech-related shares. Key performers included Tencent Holdings (3.4%), Semiconductor Manufacturing International Corporation (2.5%), Kuaishou Technology (7.3%), Pop Mart International (4.0%), and Xiaomi Corporation (1.0%).