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Hong Kong market loses steam as China-Japan tensions weigh on sentiment
Hong Kong equities faltered after early gains as geopolitical tensions between China and Japan increased risk aversion and pressured investor sentiment.
Hong Kong stocks, which began 2026 with strong gains, lost momentum as rising geopolitical tensions between China and Japan dampened investor sentiment. Major indexes pared earlier gains, with market participants citing risk aversion triggered by diplomatic strains and concerns over potential economic policy spillovers.