The Hang Seng Index opened 44 points higher at 23,541 after US airstrikes on Iran boosted oil stocks, with CNOOC and PetroChina leading gains while precious metals declined.
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HSI opens 44 pts higher as Iran strikes lift oil stocks
The Hang Seng Index opened 44 points higher at 23,541 after US airstrikes on Iran boosted oil stocks.
"Escalating tensions in the Middle East are driving a rotation into energy names while pressuring precious metals," said a Hong Kong-based trader at a global investment bank.
CNOOC Ltd. (0883.HK) opened 2.37% higher and PetroChina Co. (0857.HK) gained 1.79% after the US launched a new round of airstrikes against Iran on July 7, triggering a rebound in crude prices. The Hang Seng Tech Index rose 18 points, or 0.42%, to 4,525, while the Hang Seng China Enterprises Index added 33 points, or 0.43%, to 7,803. Precious metals and resource stocks came under pressure, with CMOC Group Ltd. (3993.HK) falling 2.63% and Zijin Mining Group Co. (2899.HK) declining 1.85%.
Among heavyweight technology stocks, Xiaomi Corp. (1810.HK) rose 1.73%, Alibaba Group Holding Ltd. (9988.HK) opened 1.2% higher, and Baidu Inc. (9888.HK) and NetEase Inc. (9999.HK) each gained about 0.5%. Tencent Holdings Ltd. (0700.HK) opened flat. Lenovo Group Ltd. (0992.HK) was the standout blue-chip gainer, surging 4.41% to HKD 21.8.
Sino Biopharmaceutical Ltd. (1177.HK) jumped 3.11% after granting AstraZeneca Plc an exclusive license to develop and commercialize its chronic respiratory disease drug TQC3721 outside China. The deal includes a $200 million upfront payment and potential milestone payments totaling as much as $1.9 billion.
The escalation in Middle East hostilities threatens to sustain upward pressure on crude prices, benefiting Hong Kong-listed energy producers while weighing on commodity stocks sensitive to a stronger dollar. The dollar climbed to a week-high after the US strikes, according to web reports. Investors are watching for further developments in the region, with any additional escalation likely to drive further rotation into energy and defense-related names.
This article is for informational purposes only and does not constitute investment advice.
[1] ＜H Shrs＞HSI Opens Up 44 pts; LENOVO GROUP Swells 4%+; Oils Thrive[2] Oil prices rise after report of Iranian attack on commercial ships in Strait of Hormuz[3] Dollar at week-high after US resumes attacks on Iran[4] Oil prices rise as the U.S. cancels Iran’s license to sell oil[5] Hong Kong-listed Sino Biopharma, AstraZeneca sign respiratory drug deal worth up to $1.9 billion
