Hong Kong stocks tumbled 705 points, or 2.7%, to 25,058 in early Monday trade, reversing prior-session gains as U.S. futures slumped and regional markets weakened amid inflationary shocks from surging oil prices. The spike in energy costs fueled concerns over higher living expenses and potential rate hikes worldwide. In geopolitical developments, Iran named Mojtaba Khamenei as Supreme Leader following the death of his father, signaling hardliners remain entrenched a week into its conflict with the U.S. and Israel, a move denounced by President Trump as “unacceptable.” In China, equities fell over 1%, snapping two days of gains as persistent producer deflation underscored weak demand. Traders largely shrugged off CPI data showing inflation hit a 3-year high of 1.3%, boosted by Lunar New Year travel and spending. Losses in Hong Kong were broad-based, led by MMG Ltd (-7.5%), Swire Properties (-7.1%), Sun Hung Kai Properties (-6.7%), Cathay Pacific (-6.6%), and AIA Group (-5.7%).
