02.03.202608:21:16UTC+00Hang Seng Tumbles to Finish at 6-Week Low

The Hang Seng Index fell 571 points, or 2.1%, to close at 26,060 on Monday, erasing earlier gains and hitting a six-week low amid broad-based sector weakness. Sentiment was dented by a sell-off in U.S. futures as tensions in the Middle East intensified, with President Trump warning the conflict could drag on for another four weeks and vowing continued strikes until U.S. objectives are achieved.

Risk appetite also waned after Chinese automakers posted steep sales declines in February, largely attributed to Lunar New Year–related disruptions in the world’s largest auto market. Investor caution further increased ahead of key data releases later this week, including China’s February PMI and Hong Kong’s January retail sales figures.

Losses were partially cushioned by gains in mainland Chinese equities, amid expectations that Beijing may intervene to stabilize markets before a major parliamentary gathering. At the same time, investors rotated into Chinese energy names as oil prices surged.

Among the notable underperformers were Xiaomi (-5.2%), SMIC (-4.7%), Meituan (-4.6%), Cathay Pacific (-4.2%), and Longfor Group (-2.3%).