Hong Kong stocks extend rebound on signs of diplomatic path in Iran conflict
Investors cheered progress on peace talks and falling crude prices, helping the Hang Seng Index rise for a second day
The Hang Seng Index rose 1.1 per cent to 25,335.95 at the close, adding to a 2.7 per cent gain a day earlier. Technology stocks advanced, driving the Hang Seng Tech Index up by 1.9 per cent, after China’s anti-monopoly regulator called for an end to the price war in the on-demand food delivery market.
On the mainland, the CSI 300 Index climbed 1.4 per cent and the Shanghai Composite Index added 1.3 per cent.
Meituan surged 14 per cent to HK$90, while JD.com soared 4.9 per cent to HK$112.40 and Alibaba Group Holding jumped 4.6 per cent to HK$128.90 after the State Administration for Market Regulation said the crackdown on the price war was meant to avoid vicious competition and disruption to the economic recovery. Bottled water maker Nongfu Spring rallied 9.4 per cent to HK$46.42 after reporting a 31 per cent profit increase last year.
US President Donald Trump signalled good faith in negotiations, saying Iran had offered a “present” related to Strait of Hormuz flows. The US and regional mediators were discussing the possibility of holding high-level peace talks as soon as Thursday, pending a response from Tehran, American news outlet Axios reported.
“Markets rarely wait for a conflict to formally end before they begin to stabilise,” said Charu Chanana, chief investment strategist at Saxo Markets. “If investors start to see even a modest reduction in escalation risk, some of the areas hit hardest by the oil shock, stagflation fears, and risk aversion may begin to find support.”