Hang Seng Rises Slightly, US-Iran Deal Optimism Lifts Asian Sentiment
Hong Kong stocks edged higher on Tuesday (May 26), with the Hang Seng Index rising 60 points, or 0.2%, to around 25,660, buoyed by market optimism over signs of progress on a US-Iran deal, which had boosted Asian equity sentiment and pressured oil prices.
Washington and Tehran were reportedly moving closer to a deal aimed at easing tensions and restoring shipping access through the Strait of Hormuz, a key energy route that has been a source of global volatility in recent months.
At the stock level, sentiment toward Xiaomi weakened after short positions on the company reportedly rose to a record, amid concerns about rising memory costs and intensifying competition in China's electric vehicle market.
The index's gains were led by financial and electronics technology stocks, with SMIC and Lenovo surging 9.1% and 10.7%, respectively. Other gains came from Kingboard Laminates (+8.5%) and XPeng (+4.7%), while Xiaomi edged up 0.4%.
On the other hand, the technology services sector weakened by around 0.7%, with Tencent dropping almost 1%, holding back the overall index's gains.
Looking ahead, market direction is likely to remain sensitive to geopolitical headlines and their implications for energy and inflation, with the primary focus being whether the US-Iran negotiations actually lead to stabilization of conditions in Hormuz or trigger another spike in risk appetite. (asd)
Source: Newsmaker.id
