Hong Kong Equities Poised for Recovery Amid US-Iran Tensions and Oil Surge

Hong Kong shares are anticipated to open higher on Thursday, attempting to recover from a session where the Hang Seng Index (HSI) shed 324.24 points, or 1.22%, to close at 26,163.24. The downturn was characterized by broad selling across the technology, property, and financial sectors. Major technology players led the decline, with Alibaba Group cratering 3.52%, Tencent Holdings plummeting 2.89%, and Baidu plunging 2.81%. The financial sector also faced pressure, as Bank of China tanked 2.67% and China Construction Bank retreated 2.12%. In contrast, US markets reached historic milestones, with the NASDAQ closing at a record 23,001.78 and the S&P 500 hitting 7,137.90. This rally was triggered by news that President Donald Trump extended a ceasefire with Iran, although the US continues to blockade maritime traffic entering and exiting Iranian ports. This geopolitical friction has directly impacted energy markets. West Texas Intermediate (WTI) crude for June delivery surged 3.95% to $93.21 per barrel, driven by supply disruption concerns as Iran maintains the closure of the Strait of Hormuz. Local investors are now shifting focus to Hong Kong's upcoming March economic data, specifically consumer prices and unemployment figures. For context, February data showed overall inflation up 1.7% year-on-year with a jobless rate of 3.8%.