Risk Sentiment Improves, Hang Seng Rises 1.4%
The Hang Seng Index surged 365 points, or 1.4%, to 26,585 on Thursday (May 7), hitting its highest level since February 2026 and extending gains from the previous session. Sentiment improved as geopolitical tensions eased.
Market optimism strengthened after reports suggested the US and Iran were getting closer to an agreement to end hostilities. This de-escalation narrative contributed to a global equity rally, with Wall Street benchmarks closing at new records overnight.
Oil prices also reportedly stabilized as Tehran assessed a new US proposal to end the war, easing concerns about prolonged supply disruptions and inflationary pressures. From a transmission perspective, declining geopolitical risks tend to suppress inflation premiums and reduce the need for expectations of longer-term tight policy, thus supporting risk assets.
In Hong Kong, nearly all sectors advanced, with only the energy and minerals sectors declining. The strengthening was led by the financial and technology services sectors, with gains in Tencent Holdings (2.0%), AIA Group (0.8%), Kuaishou Technology (5.2%), China Overseas Land & Investment (0.8%), and Xiaomi Corporation (1.3%).
The market will be monitoring clarity on the direction of US-Iran negotiations, oil's response to the latest developments, and the extent to which improved global sentiment continues into the next session. (asd)
Source: Newsmaker.id
