Hong Kong’s technology shares surged, with the Hang Seng Tech Index climbing 3.0% to 5,018.43 points, as investors reacted to signs of a breakthrough in US-Iran ceasefire talks and a bullish call on the city’s property market.
"Traders aggressively embraced the idea that the Iran war may finally be shifting from missile trajectories to negotiation tables, while the AI frenzy simultaneously poured jet fuel onto the risk rally," Stephen Innes at SPI Asset Management said.
The broader Hang Seng Index gained 2.0% to end the day at 26,296.87. The rally was broad-based, with technology and property stocks leading the charge. Among top performers, Techtronic Industries jumped 10.31% and Kuaishou Technology added 7.56%. Property developer Henderson Land Development Co. climbed 5% after Morgan Stanley raised the stock to overweight, citing an improved outlook for home prices.
The advance in Hong Kong equities reflects a significant easing of geopolitical risk premium, with falling oil prices providing relief on the inflation front. A potential reopening of the Strait of Hormuz, a critical channel for global energy supplies, is seen as a key benefit for Asia's import-dependent economies.
The positive sentiment was felt across Asia. Japan’s Nikkei 225 surged more than 5% as it reopened after a holiday, while the Shanghai Composite Index also posted gains. The rally was supported by hopes for a diplomatic resolution in the Middle East after US President Donald Trump indicated a deal with Iran was possible, which could end the military conflict and naval blockade of the key shipping lane. Oil prices held steady after falling around 10 percent over the two previous days on the news.
This article is for informational purposes only and does not constitute investment advice.
