-- Hong Kong equities rallied Wednesday as investors cheered a pause of hostilities between Iran and the U.S.
The Hang Seng Index rose by around 315.17 points, or roughly 1.2%, to end at 26,213.78, while the Hang Seng China Enterprises Index increased by 70.26 points, or around 0.8%, to close at 8,800.75.
Investors appeared to be holding out hope for a possible peace agreement between the U.S. and Iran after the Trump administration announced an end to Operation Epic Fury.
US President Donald Trump also halted the military operation Project Freedom in the Strait of Hormuz which was to help ships stranded in the waterway, a key route that carried about one-fifth of global oil and LNG trade before the war.
Trump also indicated a possible peace deal may be reached with Iran, causing dollar and oil prices to ease somewhat, Reuters reported.
In local development, Hong Kong's gross domestic product grew 5.9% year over year in the first quarter of 2026, faster than the revised 4% expansion in the fourth quarter of 2025, according to advance estimates released by the Census and Statistics Department.
Meanwhile, S&P Global said Hong Kong's private sector business conditions deteriorated for a second straight month in April as output and new orders declined amid sharply higher costs linked to the war in the Middle East
Output contracted at the fastest pace since June 2025, while new orders fell for a second consecutive month.
In corporate news, Cofoe Medical Technology (HKG:1187; SHE:301087) had a tepid debut in Hong Kong.
The Chinese home care medical device provider closed at HK$38.90 per share, marginally lower than offer price of HK$39.33.