Hong Kong stocks rebound on hopes of a US-Iran deal as tensions ease
Hang Seng Index jumps 2.8 per cent as investors welcome signs of Iran conflict easing after Donald Trump says assaults have been withheld
Hong Kong stocks rebounded on Tuesday on signs of a de-escalation of the US-Israel war against Iran after President Donald Trump said he would delay any attacks on the Gulf nation’s energy facilities.
The Hang Seng Index surged 2.8 per cent to 25,063.71 at the close. The Hang Seng Tech Index gained 2.5 per cent. On the mainland, the CSI 300 Index climbed 1.3 per cent and the Shanghai Composite Index advanced 1.8 per cent.
Biotech firm Wuxi AppTec rallied 11 per cent to HK$113.60 after its net income more than doubled last year and peer Wuxi Biologics advanced 4.6 per cent to HK$33.88. Laopu Gold jumped 16 per cent to HK$648.50 alongside a rebound in bullion prices. Alibaba Group Holding added 2.9 per cent to HK$123.20 and Tencent Holdings rose 3.1 per cent to HK$514.
Crude oil prices whipsawed after Trump said on Monday that he was withholding assaults on Iranian energy infrastructure for five days, citing ongoing talks. He also said special envoys had held discussions on Sunday evening with a “top person” on the Iranian side, claiming both parties were keen to strike a deal and would talk again by phone.
“The recent swings in the market are largely due to shifts in sentiment in the near term,” said Li Xuewei, a fund manager at HSBC Jintrust Fund Management in Shanghai. “While we are confident in the Chinese and Hong Kong markets in the long run, we still need to be vigilant about short-term risks from escalating geopolitical conflict and stagflation concerns.”
Still, there were conflicting signals about how the war was evolving. The Wall Street Journal reported that US allies in the Gulf region were moving to join the fight against Iran. Media reports also said that an Iranian lawmaker ruled out negotiations with the US. Crude oil rebounded on Tuesday after plunging overnight.