Hang Seng Rises, Tech Rally Supported by Oil Drop
Hong Kong stocks rallied on Tuesday, with the Hang Seng Index rising 84 points, or 0.3%, to 25,760. Sentiment improved after oil prices weakened, easing concerns about supply disruptions in the Middle East and boosting risk appetite.
The market also responded to US President Donald Trump's statement that he had canceled plans to attack Iran. However, Trump continued to warn the US military was on standby if no deal was reached, so geopolitical uncertainty has not completely dissipated.
Within the market, technology stocks led the gains. The technology services sector rose 10.5%, while financial stocks also gained. Strength was seen in Tencent (+2.1%), Meituan (+0.7%), AIA (+0.8%), Xiaomi (+0.7%), and PICC P&C (+0.5%).
However, the rally was uneven. SMIC fell 2.8% and Li Auto fell 3.5%, indicating that investors remained selective despite improving risk sentiment. The next direction will be largely determined by developments in the Iran negotiations, oil prices, and whether energy price declines are consistent enough to contain inflationary pressures. (asd)
Source: Newsmaker.id