The Hang Seng Index rose 269 points, or 1.1%, to 26,032 on Friday, rebounding after a brief pullback in the previous session. The recovery was supported by renewed de-escalation hopes in the Middle East, following reports that Israel signaled openness to negotiations with Lebanon, which helped restore risk appetite.
The rebound was broad-based, with major sectors advancing and technology and financial stocks leading the gains as investors rotated back into risk assets. However, sentiment remained fragile amid ongoing concerns over the Strait of Hormuz and broader regional tensions, which continued to affect oil prices and global risk appetite.
Traders remained cautious, warning that any renewed escalation could quickly erase recent equity gains and tighten financial conditions across Asia. Notable movers included Tencent Holdings (+0.3%), H World Group (+0.2%), Shenzhen Xunlei Technology (+9.8%), Semiconductor Manufacturing International Corporation (+3.9%), and Xiaomi Corporation (+1.2%).
