FX.co ★ Hang Seng Logs Biggest Drop in Nearly a Year

Hong Kong equities sank 895 points, or 3.5%, to close at 24,382 on Monday, in their steepest one-day decline since April 7 of last year. The selloff was driven by a sharp global risk-off shift amid escalating tensions in the Middle East, which also reignited market fears over stagflation.

Geopolitical risks intensified after US President Donald Trump warned of possible strikes on Iran’s power infrastructure, prompting Tehran to threaten retaliation against energy facilities across the region. The standoff has heightened uncertainty around the outlook for energy prices.

Analysts warned that sustained increases in input costs could compress corporate profit margins and pressure employment, while a pronounced slowdown in global demand would create additional headwinds for China’s exports and overall economic growth.

On the corporate front, Laopu Gold slid 8.6% and Zijin Mining Group dropped 5% as bullion prices fell sharply. Tech heavyweights Alibaba Group Holding and Tencent Holdings also retreated. By contrast, newly listed companies outperformed, with FS.com surging on its market debut and Nsing Technologies recording strong initial gains.