The Hang Seng Index fell 292 points, or 1.1%, on Tuesday to close at a two‑month low of 25,768, extending losses from the previous session amid broad-based sector weakness. Sentiment deteriorated as U.S. stock futures slid, with investors weighing the fallout from U.S.–Israel military action against Iran. The conflict has widened beyond strikes on Iranian territory, as Tehran has launched missiles and drones at U.S. targets across the Middle East.
Mainland Chinese markets also came under pressure ahead of the release of February PMI data, giving back some of the recent gains that had driven the benchmark to a ten‑year high. However, the decline in Hong Kong equities was partly offset by reports that U.S. and Chinese officials will meet in Paris next week to negotiate business agreements ahead of an April summit between Presidents Trump and Xi Jinping.
Among the notable laggards were Zijin Mining Group (-8.7%), Pop Mart (-5.9%), Xiaomi (-4.4%), and SMIC (-4.3%). In contrast, energy names advanced, including ENN Energy (+4.0%), Hong Kong and China Gas (+1.6%), and Kunlun Energy (+1.2%).
