The Hang Seng Index advanced 275 points, or 1.1%, to close at 25,940 on Tuesday, rebounding after a brief pullback in the previous session as optimism over a potential Iran deal improved risk sentiment. The move higher followed overnight gains on Wall Street after US President Donald Trump indicated renewed prospects for talks with Tehran, easing worries about a prolonged disruption to energy supplies despite the ongoing blockade of the Strait of Hormuz.
Crude prices also retreated on signs that both sides may revive ceasefire negotiations, further supporting equities by alleviating inflation concerns and reducing expectations of tighter monetary policy, which in turn bolstered risk appetite across the region.
Most sectors in the Hong Kong market recorded gains, with financials and technology shares leading the advance. Notable movers included Tencent Holdings (+1.5%), AIA Group Limited (+1.1%), Xiaomi Corporation (+1.6%), Hong Kong Exchanges and Clearing (+0.9%), and Galaxy Entertainment Group (+0.7%).