FINANCE

Hong Kong Stocks Slide as Mideast Strikes Spur Risk Aversion

Published: Mar. 2, 2026 4:03 p.m. GMT+8

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Hong Kong shares fell Monday after Israel and the U.S. launched military strikes on Iran, triggering a wave of risk aversion across Asian markets and pushing the city’s technology gauge to a 10-month low.

The Hang Seng Index dropped as much as 2.8% in early trading, slipping below the 26,000 level, before trimming losses to close the morning session down 1.6%. The Hang Seng Tech Index fell more than 3% at one point, breaking below 5,000 to hit the lowest level since April 2025.

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Hong Kong shares dropped as military strikes by Israel and the U.S. on Iran spurred risk aversion, with the Hang Seng Index down 1.6% by midday.
Technology stocks hit a 10-month low, while energy stocks outperformed on rising oil prices; China Southern Airlines fell over 8%.
The sell-off spread to regional markets, with Pakistan’s KSE-100 down over 9% and Japan’s Nikkei 225 falling 1.4%.

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Who’s Who

CNOOC Ltd.: CNOOC Ltd. (中国海洋石油有限公司) is an energy company. It experienced gains in its share price, rising nearly 4% by midday. This surge was attributed to rising oil prices driven by geopolitical tensions, causing energy stocks to outperform amid a general downturn in the Hong Kong market.

China Southern Airlines Co. Ltd.: China Southern Airlines Co. Ltd. experienced a decline in its stock performance. The airline's shares were down by over 8% by midday, primarily due to concerns about rising fuel costs. This downturn occurred amidst broader market instability exacerbated by geopolitical tensions.

AI generated, for reference only