09.03.202608:21:56UTC+00Hang Seng Pares Losses at Finish

The Hang Seng Index fell 349 points, or 1.4%, to close at 25,408 on Monday, erasing gains from the previous two sessions amid broad-based sector weakness. Risk sentiment deteriorated following a sharp decline in U.S. equity futures, as the escalating conflict in the Middle East drove oil prices higher and undermined appetite for risk assets.

Chinese equities also retreated after modest gains on Friday, pressured by doubts that an April summit between U.S. President Donald Trump and Chinese President Xi Jinping would yield meaningful progress in bilateral relations. At the same time, China’s annual parliamentary meetings suggested little urgency in Beijing to implement large-scale fiscal or monetary stimulus.

Earlier losses were partially pared after data showed mainland consumer inflation hit a three-year high in February, boosted by Lunar New Year demand, while producer price deflation moderated. Sector-wise, property and financial stocks each fell 2.4%, while consumer and technology names posted more moderate declines.

Among notable laggards were Cathay Pacific (-4.9%), Techtronic Industries (-4.4%), Sands China (-4.2%), and Nongfu Spring (-3.1%).