The Hong Kong and Tokyo stock markets plunged on Monday as investors are becoming increasingly worried about the prolonged conflict in the Middle East, which could potentially change the outlook for inflation and interest rates, according to a market analyst.
Hong Kong's stock market ended lower Monday with the benchmark Hang Seng Index down 3.54 percent to close at 24,382.47 points.
The Hang Seng China Enterprises Index fell 3.11 percent to end at 8,307.82 points, while the Hang Seng Tech Index fell 3.28 percent to end at 4,712.48 points.
Timothy Pope, a market analyst for China Global Television Network (CGTN), said stocks in gold producers and jewelry retailers dropped significantly, as precious metal prices tumbled.
"The Hang Seng was also down about 3.5 percent. Only 2 stocks gained on that index -- one the oil producer CNOOC and the other Geely Automobile. Gold producers and jewelry retailers were also down. The spot gold price fell to its lowest level this year today. Last week, actually, was the worst for gold in 43 years. It's down about 10 percent. So, that's the worst loss it has had since 1983 when the Volcker Fed rate hikes really crushed spot gold. And today marked the 9th session in a row of declines for the precious metal -- silver and platinum prices are also down. This turnaround for gold is essentially down to the fact that the war has completely flipped the inflation and interest rate outlook for many developed economies. A few weeks ago, we were looking at a market which expected rate cuts this year in the U.S., UK and Europe. Now rate hikes are back on the agenda and gold is a lot less appealing because it's not a yielding asset," said Pope.
Tokyo stocks ended sharply lower on Monday, with the benchmark Nikkei stock index falling to its lowest level since Jan 8.
The 225-issue Nikkei Stock Average ended down 1,857.04 points, or 3.48 percent, from Thursday at 51,515.49, after briefly losing over 2,600 points.
"The Nikkei 225 slid 3.5 percent, that was a very popular fall today, being down about 5 percent earlier on in the session. It's worth noting as well how the war has also completely flipped the outlook for the Nikkei. Before, the projections were broadly for a fairly steady path towards 60,000 points for the index. Now, we are looking at the very realistic prospect that it will slip below 50,000 points quite soon. Japan also gets about 90 percent of its oil from the Middle East, which obviously makes the country very exposed to the current conflict. Today we saw all the heavyweight stocks like Advantest plunging and 95 percent of Japanese prime equities actually traded lower this session," said Pope.
Hong Kong, Tokyo stock markets plunge on Monday as Middle East conflict continues
Global business leaders gathering in Beijing for the China Development Forum 2026 said that they remain optimistic about China's role as a key driver of growth and are committed to deepening their presence in the Chinese market.
Themed "China in its 15th Five-Year Plan period: advancing high-quality development and creating new opportunities together", the two-day forum, which kicked off on Sunday, highlighted China as a key engine of global development as the country begins its 15th Five-Year Plan (2026-2030).
Patrick Pouyanne, chairman and CEO of TotalEnergies, a French energy giant, acknowledged the growing barriers in global energy cooperation, but stressed that both China and Europe share a common path toward green energy.
"We have observed more barriers, in fact, we see a lot of, I would say, non-cooperative attitude, I am still convinced, in particular, in the field of energy. But in fact, both China and Europe have exactly the same strategy, which is going to more green energy, which is a way to combine security with supply and China is leading the way," he said.
Philippe Delorme, president and CEO of KONE Corporation, a global leader in the elevator and escalator industry, said that Finnish Prime Minister Petteri Orpo's visit to China from January 25 to 28 has reinforced trust, mirroring the strong relationships KONE has built with its Chinese partners.
"Prime Minister Orpo went to China to reinforce the trust that has been built over time, which is actually very parallel to the trust that KONE has been building with the China-based ecosystem and its customers," he said.
Judy Marks, CEO and president of American elevator maker Otis emphasized the company's strong commitment to China, highlighting the access and enthusiasm she experiences on every visit.
"Well, every time I come to China, my agenda is packed, and I want it that way. I want to see our colleagues, I want to see our business partners, I want to see government officials. And guess what, in China, every time we have that access. It's always an exciting time in China. We're investing and we're here to stay," she said.
Rogier Janssens, president of Merck China, talked about his professional journey of returning to China, drawn by the country's rapid pace of development and the opportunities he sees unfolding.
"I am not new to China. I'm also not new to Merck. I ran the healthcare business for Merck between '17 and '22 out of Beijing. It's interesting. Actually, at some point in time, I was thinking about after 35 years of working in the pharmaceutical industry, I thought maybe I needed to slow down a little bit and take it easy. Maybe I'd take a job at the headquarters or something like that. But in reality, I thought no. There needs to be a bit more excitement and I'm super excited about what I'm seeing and hearing. I mean the speed of China, the way things are development so rapidly here," he said.
Since its inception in 2000, the China Development Forum has become one of the country's major platforms for dialog among Chinese government officials, global business leaders, international organizations, and scholars.
Global business leaders express confidence in China's market
