FX.co ★ Hong Kong Stocks Drop Over 3%

The Hang Seng Index fell more than 3% to around 24,500 on Monday, its lowest level since August 2025, as escalating tensions in the Middle East sparked a broad risk-off move across global markets. Now entering its fourth week, the war has kept investors on edge amid increasingly aggressive rhetoric and no clear route to de-escalation. Iran warned it could target regional energy infrastructure if US President Donald Trump follows through on threats to attack its power grid should the Strait of Hormuz remain closed, intensifying fears of supply disruptions and a protracted conflict. In turn, elevated oil prices have stoked inflation concerns and strengthened expectations of interest rate hikes by major central banks. All Hong Kong sectors declined, led by property, financials, and technology. Notable laggards included AIA Group (-6.2%), SMIC (-4.1%), and Sun Hung Kai Properties (-4.8%). Zijin Mining also fell 5.4% after announcing it had taken control of Chifeng Gold.