Hong Kong Shares Advance on US-Iran Optimism

The Hang Seng Index climbed 160 points, or 0.6%, to 25,540 on Friday, recovering from the previous session’s losses and tracking overnight gains on Wall Street and boosted sentiment amid hopes for a potential US-Iran agreement to end the conflict. Reports indicated that Iran viewed the latest US proposal as helping to narrow differences between the two sides, reinforcing hopes for progress in negotiations. On the data front, investor sentiment was also supported after Hong Kong’s inflation rate held steady at 1.7% in April, unchanged from the previous month, signaling stable underlying price pressures. In Hong Kong, technology services surged 12.6%, led by strong gains in SMIC and Lenovo, which rose 1.7% and 9.5%, respectively, while financial stocks also contributed to the rally as investors rotated into the sector amid improving risk appetite. Other notable movers included Tencent Holdings (1.1%), AIA Group (0.4%), Sunny Optical Technology (1.5%), Xiaomi Corporation (1.1%).
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