U.S.-Iran Ceasefire Agreement Boosts Asia-Pacific Markets, Hong Kong Lags Behind

(Central News Agency reporter Chang Chien, Hong Kong, 15th) - Major Asia-Pacific stock markets rallied today following news that the United States and Iran have agreed to a ceasefire. However, Hong Kong's stock market maintained its recent weak trend, with the Hang Seng Index closing up 124 points, or 0.5%, at 24,842.

Total trading volume in the Hong Kong market reached HK$283.3 billion.

According to consolidated international media reports, spurred by the U.S.-Iran ceasefire agreement, Japan's Nikkei 225 Index closed at 69,317, up nearly 5%. South Korea's KOSPI Index finished at 8,545, surging 5.2%. Taiwan's weighted index closed at 45,396.99, gaining 1,227.95 points.

In contrast, Hong Kong's market rose only 0.5%, underperforming its regional peers.

However, most market analysts were not surprised by this outcome. Hong Kong's stock market has consistently underperformed across the Asia-Pacific region in recent years—described as 'standing alone in fatigue'—while other major regional markets repeatedly hit new highs, Hong Kong has remained sluggish and moved in the opposite direction, mostly trading below the 28,000 level without the strength to rebound.

Over the past few months, Hong Kong's market has seen 'lower lows' in successive waves, failing to regain the 25,000-point mark.

Regarding Hong Kong's prolonged weakness, some analysts attribute it to capital outflows caused by U.S. interest rate hikes. Others suggest the market lacks compelling 'narrative themes' such as semiconductors and artificial intelligence, making it less attractive to investors.

However, some individual analysts note that Hong Kong's economy has shown signs of recovery in recent years and is performing reasonably well, yet the stock market remains persistently weak. Current analyses fail to fully explain this divergence. Others point to geopolitical factors that have led foreign investors to underweight Hong Kong equities. (Edited by Chou Hui-ying) 1150615

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