The Hang Seng Index climbed 269 points, or 1.1%, to 26,032 on Friday, bouncing after a brief pullback in the previous session as renewed Middle East de-escalation sentiment following reports that Israel signaled openness to negotiations with Lebanon helped restore risk appetite. The rebound was driven by broad-based buying across major sectors, with technology and financial stocks leading gains as investors rotated back into risk assets. However, sentiment remained fragile amid concerns over the Strait of Hormuz and wider regional tensions, which continued to influence oil prices and global risk appetite. Traders stayed cautious, warning that any escalation could quickly reverse recent equity gains and tighten financial conditions across Asia. Notable movers included Tencent Holdings (0.3%), H World Group (+0.2%), Shenzhen Xunlei Technology (+9.8%), Semiconductor Manufacturing International Corporation (+3.9%), and Xiaomi Corporation (+1.2%).
