Mainland and Hong Kong stocks rebounded on Tuesday after US President Donald Trump postponed a threat to strike Iran's power grid, offering a brief lift to risk appetite even as investors ⁠stayed wary following Tehran's denial that any talks had taken place.

The benchmark Hang Seng Index ended up 681 points, or 2.79 percent, at 25,063.

The China enterprises index was up 191 points, or 2.31 percent, at 8,499 while the tech index was up 118 points, or 2.51 percent at 4,830.

Across the border, the benchmark Shanghai Composite Index ended trading up 68 points, or 1.78 percent, at 3,881.

The Shenzhen Component Index was 191 points, or 1.43 percent, higher at 13,536 while the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, was 16 points, or 0.5 percent, up at 3,251.

The combined turnover of the main Shanghai and Shenzhen indexes was nearly 2.08 trillion yuan, down from 2.43 trillion yuan on Monday.

Global markets regained some ground after Trump cited "productive" discussions with senior Iranian figures, though some gains were trimmed as Iran sent waves of missiles ⁠into Israel, dismissing Trump's talk of negotiations as "fake news".

⁠Onshore equity performance has ⁠shown only a weak link to energy prices, and implied volatility on major A-share indexes is running below levels ⁠seen during the April ‌2025 flare-up in global trade tensions and beneath many overseas peers, said Lei Meng, China equity strategist ‌at UBS. The brokerage said the recent "de-risking" phase might be nearing an end ⁠in the short term.

The selloff on Monday saw mainland and Hong Kong benchmarks drop more than 3 percent, their steepest declines since Trump's "Liberation Day" tariff shock last ‌year, as the escalating Middle East conflict sparked a global rout.

The onshore and offshore energy indexes fell 1 percent and 2 percent, respectively, while non-ferrous metal shares rebounded, up 3.2 percent. Materials stocks in Hong Kong jumped ⁠more ‌than 6 percent.

Defensive financial stocks rose 1.5 percent, ‌led gains onshore, with bank shares up 2.1 percent.

Shares of WuXi AppTec jumped the most in ‌eight months after the Chinese new-drug developer and manufacturer posted a higher annual profit.

Laopu Gold's shares surged 16 percent, buoyed by strong 2025 financial results and an ⁠upbeat outlook.

In Tokyo, the Nikkei rose 736 points, or 1.43 percent, to close at 52,252 after rising up to 2.3 percent earlier in the session. The broader Topix climbed 73 points, or 2.1 percent, to 3,559 after jumping up to 2.6 percent earlier.

In Seoul, the benchmark Kospi closed up 148 points, or 2.74 percent, at 5,553. (Reuters & Xinhua)



Edited by Thomas McAlinden