Hang Seng Index News: Iran Ceasefire Hopes Spark Rebound in EV and Tech Stocks

Markets Brace for US Decision on Iran Strike

The Iran-Israeli conflict entered its second week on Friday, June 20, challenging bets on a swift end to the war. As Iran and Israel continued air strikes, uncertainty lingered on whether President Trump would greenlight his attack plan. US involvement could spark a regional conflict, impacting risk assets. However, US inaction going into the weekend bolstered demand for Hong Kong and Mainland China stocks.

The Hang Seng Index advanced in morning trading as EV, real estate, and tech stocks trended higher.

The Israel-Iran conflict, trade developments, and stimulus news from Beijing remain key drivers. These factors will likely dictate whether the Hang Seng Index drops below 23,000 or revisits 24,000.

Hang Seng Index Gains as Threats of an Imminent US Attack Ease

While US futures were down in morning trading on June 20, with the Nasdaq 100 dropping 61 points, the Hang Seng Index climbed 0.84% to 23,433. Mainland China’s markets also advanced, with the CSI 300 and Shanghai Composite Index up 0.28% and 0.10%, respectively.

EV, Real Estate, and Tech Stocks Steady After a Three-Day Sell-Off

Fears of an imminent US strike on Iran subsided, drawing dip-buyers from the sidelines. The Hang Seng Mainland Properties Index rose 0.16%. Tech giants Alibaba (09988) and Baidu (09888) gained 0.64% and 0.49%, respectively, driving the Hang Seng Tech Index up 0.22%.

EV stocks mirrored the broader market gains, with BYD (01211) and Li Auto (02015) rising 0.56% and 0.39%, respectively.

Middle East Conflict: US Delays Decision to Attack Iran

News broke overnight that President Trump will decide whether to strike Iran within the next two weeks, allaying fears of an attack this week. The news followed reports of Iran’s military command warning US involvement could broaden the conflict in the region.

A potential delay to strategic US strikes on Iran could give time for mediators to negotiate a ceasefire.

There were also reports of Chinese electronic intelligence ships entering the Persian Gulf, potentially delaying a US strike. China has offered to mediate ceasefire negotiations to prevent a regional conflict and potential oil supply disruption.

Technical Setup: 23,000 Support Key as Risks Linger

On June 20, the Hang Seng Index continued trading within its recent congestion zone, hovering around 23,500. Significantly, the index tested the 50-day Exponential Moving Average (EMA) before trending higher. Despite the morning gains, the Middle East conflict and tariff uncertainties continue to affect market sentiment.

A Middle East ceasefire could enable progress toward a US-Iran nuclear agreement, potentially triggering a move back to 24,000. A sustained breakout above 24,000 could pave the way to the June 11 high of 24,439. Conversely, a US strike on Iran could drag the index down to 23,000, potentially exposing 22,500. Any stimulus news from Beijing may offer some relief.

Hang Seng Technical Outlook

• Resistance: 23,500, 24,000, and then 24,439.
• Support: 50-day EMA at 23,238, 23,000, then 22,500.
• Short-term Bias: Bullish but hinged on geopolitical tensions, trade developments, and stimulus-related updates.

Outlook: Ceasefire Support or Slump Below 23,000?

The Hang Seng Index moved back to its recent congestion range on June 20. However, market fears about a US attack remain a headwind. A ceasefire and progress toward a US-Iran nuclear deal would lift sentiment. In the meantime, resistance at 23,500 may cap any rebound attempts without positive developments.

What’s next for the Hang Seng? Stay informed with real-time updates as geopolitical risks and US-China developments drive sentiment. Follow our live coverage and consult our economic calendar.