Hang Seng Poised for Recovery Amid Middle East Tensions and Oil Surge

The Hang Seng Index is positioned for a rebound on Tuesday after a modest decline on Monday, as Asian markets look to mirror the gains seen in U.S. equities. The index closed Monday at 25,660.85, down 0.90%, following a period of alternating daily finishes. Market sentiment is currently being driven by a complex mix of geopolitical instability and corporate optimism. U.S. President Donald Trump recently imposed a blockade on ships transiting the Strait of Hormuz following the failure of diplomatic talks between Washington and Tehran. This escalation has significantly impacted commodity markets, pushing West Texas Intermediate (WTI) crude prices up 2.76% to $99.24 per barrel. Despite the geopolitical friction, Wall Street ended Monday on a high note, providing a bullish lead for the region. The Dow climbed 301.68 points to 48,218.25, while the NASDAQ jumped 1.23% to 23,183.74 and the S&P 500 rallied 1.02% to 6,886.24. Traders appear to believe that the U.S. administration may eventually scale back the blockade to avoid a full-scale conflict. In Hong Kong, the previous session saw a divergence in sector performance. Energy stocks such as PetroChina (+1.57%) and China Shenhua Energy (+0.89%) provided support, while technology giants like Tencent (-2.87%) and Alibaba (-1.83%) faced selling pressure. Looking ahead, energy and technology sectors are expected to be the primary drivers of Tuesday's anticipated upside.