Hang Seng Rises 0.5% as Hopes for US-Iran Ceasefire Extension Strengthen
The Hang Seng Index rose 137 points, or 0.5%, to 25,140 on Friday, reversing the previous session's decline. The gain came as risk sentiment improved following a tentative agreement between the US and Iran to extend the ceasefire for 60 days.
These hopes for de-escalation eased concerns about energy supply disruptions in the Middle East, boosting risk appetite. Oil prices also moved lower amid expectations that shipping through the Strait of Hormuz would resume more smoothly, adding support to risk assets.
Hong Kong's gains were broad-based, led by financial, producer, and technology stocks. Lenovo surged 19.4% on optimism about AI-related demand and continued earnings momentum; Other stocks that gained included Tencent (0.4%), AIA Group (2.3%), Pop Mart International (5.8%), Meituan Class (0.6%), and Innovent Biologics (6.1%), while SMIC and Xiaomi fell 1.7% and 2.4%, respectively.
For the market, the combination of easing geopolitical risks and a correction in oil prices reinforced the risk-on narrative, as concerns about energy supply and cost pressures eased. The focus now shifts to the sustainability of the ceasefire, developments in the Strait of Hormuz, the direction of oil prices, and the continuation of sectoral catalysts, particularly in technology. (asd)
Source: Newsmaker.id
