Investment 1/3/2026

Hong Kong stocks failed to break the 25,000-point mark on the last trading day of March and the first quarter. The Hang Seng Index opened 67 points higher at 24,818, rising as much as 237 points to a high of 24,988, before encountering resistance and falling back, dropping as much as 191 points to 24,559. It recovered its losses in the late session, closing up 37 points or 0.15% at 24,788. The Technology Index fell 40 points or 0.85% to 4,649. Total market turnover was HK$255.7 billion.


The Hang Seng Index initially rose in the first quarter of this year before declining, accumulating a drop of 842 points or 3.28% for the quarter; March alone saw a cumulative drop of 1,842 points or 6.91%, marking the worst start to a quarter in four years.


The situation in the Middle East, lower oil prices, and a weaker US dollar were factors that boosted the stock market. The Hang Seng Index is expected to recover the 25,000-point mark today. If it further returns above the 250-day moving average (25,128), a key level separating bull and bear markets, it could avoid further significant declines.


European stocks performed well, with British, French, and German stocks rising 0.48%, 0.57%, and 0.52% respectively.


US President Trump reportedly intends to end military action against Iran before the Strait of Hormuz reopens, and Iranian President Pezechzian also signaled a ceasefire, stating that Tehran is willing to end the war only if it is assured of no further attacks. This news fueled market hopes for a potential ceasefire, causing oil prices to fall from their highs and US Treasury yields to soften, leading to a sharp rise in US stocks on Tuesday. The Dow Jones Industrial Average opened 325 points higher and then extended its gains to as much as 1,167 points, reaching a high of 46,383. The S&P 500 and the tech-heavy Nasdaq also closed near their daily highs, with the Nasdaq surging over 3.8%.


U.S. stocks closed higher. The Dow Jones Industrial Average rose 1,125 points, or 2.49%, to 46,341; the S&P 500 gained 184 points, or 2.91%, to 6,528; and the Nasdaq Composite jumped 795 points, or 3.83%, to 21,590.


The U.S. dollar index fell as much as 0.7% to 99.81, while the yen rose 0.67% to 158.66 against the dollar. The euro rose 0.9% to $1.1567. Bitcoin fluctuated but rose 3.9% to $68,495. Spot gold prices rose as much as 3.9%, reaching a high of $4,686.9 per ounce.

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