Investment 9/4/2026

Easing tensions in the Middle East boosted Asia-Pacific stock markets, with the MSCI Asia Pacific Index jumping 5%, the Nikkei 225 closing up 5.4%, and the South Korean KOSPI index rising even more, by 6.9%. Hong Kong stocks resumed trading after the holiday and closed higher, returning above the 250-day moving average (25,151), often referred to as the "bull-bear dividing line."

The Hang Seng Index opened 656 points higher, or 2.6%, at 25,772, rising as much as 817 points to 25,934, before closing up 776 points, or 3%, at 25,893. The Technology Index rose 244 points, or 5.2%, to 4,923. Turnover on the main board exceeded HK$372.4 billion.

The Hang Seng Index has broken through its descending trendline; today, attention should be paid to whether it can stabilize after breaking through the 50-day moving average (26,163). The market outlook depends on how the situation develops. There are still reservations about the successful implementation of the ceasefire agreement between the US and Iran. It remains to be seen whether the Strait of Hormuz can truly reopen smoothly, and whether oil prices will continue to decline. Hong Kong stocks may see a correction, with the Hang Seng Index's support level at the 20-day moving average (25,369).

European stocks rallied across the board, with the UK, French, and German stock markets closing up 2.51%, 4.49%, and 5.06% respectively.

The US and Iran's agreement to a two-week ceasefire makes the reopening of the Strait of Hormuz, a crucial choke point in the Persian Gulf, a possibility. Qatar is also reportedly resuming liquefied natural gas (LNG) production to alleviate energy crisis concerns, potentially cooling inflation. The market is again betting on a US interest rate cut this year, stimulating a strong rebound in global stock markets on Wednesday. The Dow Jones Industrial Average gapped up 393 points and rose as much as 1,432 points to 48,017; the S&P 500 surged as much as 2.67%, and the tech-heavy Nasdaq Composite jumped as much as 3.65%. The VIX volatility index, commonly known as the "fear index," plunged as much as 22.77% to 19.91.

At the close of trading on the US stock market, the Dow Jones Industrial Average surged 1,325 points, or 2.7%, to 47,909; the S&P 500 rose 165 points, or 2.51%, to 6,872; and the Nasdaq Composite climbed 671 points, or 2.8%, to 22,634.

The US dollar index briefly retreated 1.33% to 98.525, the Bloomberg Dollar Spot Index fell 1.1% to a four-week low, the euro rose 1.1% to $1.1722, and the yen gained 1.08% to 157.89 against the dollar. Bitcoin rose as much as 50%, reaching a three-week high of $72,841. Gold prices rose 3% before retreating.