U.S. stocks surged Monday after President Donald Trump said the U.S. and Iran had begun talks and that planned strikes on Iranian energy infrastructure were paused, raising hopes of easing Middle East tensions. The Dow jumped 631 points (+1.38%), while the S&P 500 (+1.15%) and Nasdaq (+1.38%) also posted strong gains. Oil prices dropped significantly (around 10%), boosting investor sentiment. The rally was broad, with gains across sectors like tech, banks, and airlines. Investors see potential for de-escalation, though uncertainty remains about the conflict and oil supply impacts. Analysts caution that markets may stay volatile and dependent on geopolitical developments.

Hong Kong stocks fell sharply, with the Hang Seng Index dropping 3.5% (894 points), alongside similar declines in the HSCEI and HSTECH, amid heavy market turnover. The sell-off was broad-based, led by weakness in gold and silver-related stocks after precious metal prices fell, causing major mining and jewelry companies to decline significantly. Resource stocks and metals producers also dropped, while financials—including banks, insurers, and brokers—came under pressure due to weak earnings and profit concerns. Overall, losses across multiple sectors reflected a widespread market downturn driven by falling commodity prices and negative sentiment toward financial and cyclical stocks.

HENDERSON LAND Full-yr Underlying Profit Down 38% to ~$6.1B; Final DPS Cut to 76 Cents

POWERLONG Expects 2025’s Loss to Widen to ~RMB6.6-7B

WUXI APPTEC Annual NP RMB19.195B, Up 105.2%; Final DPS Hikes to RMB1.57927

LAOPU GOLD Expects 1Q26 NP to Be ~RMB3.6-3.8B

Asian defence stocks have surged as the Middle East conflict continues, but analysts say their strong performance is driven more by long-term global trends than by the conflict alone. Rising geopolitical tensions, reduced reliance on the U.S., and lessons from wars like Ukraine have already pushed countries—especially in Asia and Europe—to increase defence spending and prioritise domestic capabilities. As a result, regional defence companies have significantly outperformed broader markets in 2025, benefiting from higher demand for weapons, technology, and military systems. While the ongoing conflict may boost short-term demand, the sector’s growth is expected to remain supported by sustained structural factors such as rearmament, “America First” policies, and expanding defence budgets across major economies.

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