The Hang Seng Index rose 220 points, or 0.9%, to 24,935 on Monday, starting the week on a positive note and extending gains from the previous session. Sentiment improved after the US and Iran reached an interim agreement to reopen the Strait of Hormuz, with a formal signing ceremony expected later this week. The deal eased concerns over potential disruptions to global energy supplies and lowered geopolitical risk.
The agreement prompted a sharp drop in oil prices, helping to alleviate inflation fears and supporting demand for risk assets across global markets. Investors rotated back into large-cap technology and growth stocks, with the improved risk appetite spurring bargain hunting after recent market weakness.
Gains were broad-based, led by financial, technology, and retail trade shares. Notable advancers included AIA (up 1.8%), Tencent Holdings (up 1.0%), Kingboard Laminates (up 7.2%), Lenovo (up 5.6%), and Semiconductor Manufacturing International Corporation (up 2.6%).
