Geopolitical Sentiment Eases, Hang Seng Rallies Sharply
Hong Kong stocks rallied sharply on Wednesday (April 8), following a broad rally in Asian and European markets after the United States and Iran agreed to a two-week ceasefire that includes the reopening of the Strait of Hormuz. The Hang Seng Index closed up 3.1% to 25,893.02, reflecting improved sentiment after more than a month of war that weighed on global markets.
Market optimism was driven by expectations of easing the risk of energy supply disruptions from the Gulf region, which during the conflict triggered a surge in volatility across assets. With the focus back on the negotiation process, market participants began to reduce the geopolitical risk premium that had previously held back risk assets, although attention remains focused on the implementation of the Hormuz reopening and the continuation of talks during the ceasefire period.
Source: Newsmaker.id
