The Hang Seng dropped 349 points, or 1.4%, to end at 25,408 on Monday, reversing gains from the prior two sessions amid broad-based sector losses. Sentiment was hit by a sharp decline in U.S. futures as the escalating Middle East conflict sent oil prices soaring, dampening appetite for risk assets. In China, equities also fell after modest Friday gains, weighed by skepticism that an April summit between U.S. President Donald Trump and China’s Xi Jinping would deliver progress in bilateral ties. Meanwhile, Beijing’s annual parliament meeting signaled no urgency for major fiscal or monetary stimulus. Still, early losses were trimmed by data showing consumer inflation in the mainland notched a three-year top in February on Lunar New Year demand, while producer deflation eased. Property and financials each fell 2.4%, while consumer and tech stocks saw milder declines. Notable losers included Cathay Pacific (-4.9%), Techtronic Inds. (-4.4%), Sands China (-4.2%), and Nongfu Spring (-3.1%).
