Hang Seng Plummets 3.9% as Geopolitical Fears Roil Markets
Heightened geopolitical tensions between the United States and Iran triggered a sharp sell-off in Hong Kong equities, sending the Hang Seng Index plunging by 1,018 points. The index fell 3.9% to 24,304, its lowest point since July 2025, after U.S. President Donald Trump issued a 48-hour ultimatum for Iran to reopen the Strait of Hormuz. Trading volume surged to HKD 258.4 billion as investors rushed to exit positions. The rout was broad-based, with gold retailer LAOPU GOLD falling 11% to HKD 543.5. Other major blue chips suffered heavy losses, including CHINAHONGQIAO, which dropped 9.9% after reporting disappointing results, and insurers CHINA LIFE and AIA, which both sank by over 8%. In a stark exception to the market-wide decline, GEELY AUTO rose more than 2%, becoming the only blue-chip stock to end in positive territory.
Global Risk-Off Wave Hits Commodities and Crypto
The flight from risk assets extended beyond equities, hitting commodities and digital assets. Spot gold unexpectedly fell 4.3% to $4,296.67 per ounce, a move some analysts attribute to investors selling the metal to cover margin calls on losses in their equity portfolios. Spot silver declined even more sharply, sliding 6% to $63.72. Meanwhile, Bitcoin dropped to $68,241 as the geopolitical instability sparked over $1 billion in cryptocurrency liquidations within a 24-hour period. The sell-off was global, with Japan's Nikkei 225 falling over 4% and South Korea's KOSPI plunging more than 6%. In this environment, investors sought safety in traditional havens, pushing assets in U.S. money market funds above $8 trillion and strengthening the U.S. dollar.
