FX.co ★ Hong Kong Stocks Rally on Wall Street Lift, Geopolitical Hopes

Hong Kong equities advanced 377 points, or 1.5%, to 25,789 in Tuesday morning trade, rebounding from the previous session as gains were broad-based across all sectors. Risk appetite improved following an overnight rally on Wall Street and comments from U.S. President Donald Trump suggesting the conflict with Iran may be nearing a conclusion, alongside reports that oil sanctions on Russia could be eased.

On the mainland, Chinese stocks edged higher after Monday’s pullback, with investors awaiting the release of combined January–February trade data later today. The figures are expected to show stronger exports and imports, following last year’s record USD 1.2 trillion trade surplus. At the same time, consumer inflation accelerated to a three-year high in February, driven in part by Lunar New Year spending, while producer price deflation showed signs of easing.

However, a decline in U.S. equity futures limited further upside as geopolitical tensions lingered, with Iran’s military pledging additional missile strikes. Early outperformers in Hong Kong trading included Minimax Group (+10.1%), H World Group (+4.7%), Cathay Pacific (+4.3%), Tencent Group (+2.9%), and SMIC (+2.6%).