Hong Kong Shares Rally on US-Iran Deal Hopes

The Hang Seng Index surged 365 points, or 1.4%, to 26,585 on Thursday, its highest level since February 2026, extending gains from the previous session as easing geopolitical tensions lifted investor sentiment. Market optimism strengthened after reports suggested the US and Iran were moving closer to a deal to end hostilities, fueling a rally in global equities and pushing Wall Street benchmarks to fresh record highs overnight. Oil prices also steadied as Tehran assessed a new US proposal aimed at ending the war, easing concerns over prolonged supply disruptions and inflationary pressures. In Hong Kong, most sectors traded higher, with only the energy minerals sector declining. Gains were led by financials and technology services. Key performers included Tencent Holdings (2.0%), AIA Group (0.8%), Kuaishou Technology (5.2%), China Overseas Land & Investment (0.8%), and Xiaomi Corporation (1.3%).
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