The Hang Seng Index traded little change, 0.2% at 26,010 on Monday, as early volatility gave way to cautious sentiment amid rising geopolitical tensions and disruptions in energy markets. Oil prices surged to recent highs after stalled US-Iran peace talks kept the Strait of Hormuz largely impassable, raising concerns over prolonged supply constraints and global inflation.
Higher crude prices weighed on risk appetite, as investors worried that persistent energy cost pressures could delay expected monetary easing. US stock futures also edged lower ahead of a busy week of central bank meetings and key earnings. Hong Kong equities lagged regional peers, with investors turning defensive amid uncertainty over the interest rate outlook. Still, semiconductor stocks extended gains from the previous session, led by SMIC, which jumped 6.0%. Other movers included AIA Group (1.4%), Lenovo (1.3%), and Shenzhen Xunce Technology (1.4%).
