Cailian Press, April 8 (Editor Hu Jiarong) Boosted by positive expectations from U.S.-Iran peace talks, Hong Kong stocks experienced a long-awaited surge. As of the midday close, the Hang Seng Index rose 2.82% to 25,824.43 points; the Technology Index increased by 4.42% to 4,886.15 points; and the State-Owned Enterprises Index climbed 2.36% to 8,656.31 points.

In terms of early trading performance, optical communication, memory concept, gold, and airline stocks performed strongly, while coal, oil, and oil equipment stocks declined.

AI computing power demand drives industry recovery; signals of industry recovery emerge.

Optical communication stocks became the brightest stars in today’s market. As of the midday close, Huitong Technology (01729.HK) surged 18.47%, Changfei Fiber Optic Cables (06869.HK) rose 15.56%, and Cambridge Technologies (06166.HK) increased by 7.33%.

Analysts pointed out that the strength of the optical communication sector mainly benefited from the continuous global surge in AI computing power demand, with accelerating growth in shipments of 800G optical modules. A China Merchants Securities research report showed that as overseas cloud vendors’ capital expenditures recover, the prosperity of the optical module industry is expected to continue rising. Analysts at CICC believe that optical communication, as a core component of AI infrastructure, still has solid long-term growth logic, and its current valuation remains attractive.

Supply-demand structure optimization boosts memory concept stocks; Montage Technology rises over 11%.

As of the midday close, Montage Technology (06809.HK) surged 11.77%, while Zhaoyi Innovation (03986.HK) rose 3.58%.

According to the latest memory industry research from TrendForce, major manufacturers are steadfast in their strategy of gradually exiting the production of mature DDR4 and lower products. With the ongoing contraction in market supply structure, overall prices have accumulated significant increases over the past few months. Considering continued supply reductions, order shifts, and insufficient capacity expansion among mature process suppliers, TrendForce predicts that Consumer DRAM contract prices will continue to increase by 45-50% quarter-on-quarter in the second quarter of 2026.

Central bank’s continued purchases boost industry confidence; Zhufeng Gold rises nearly 12%.

As of the midday close, Zhufeng Gold (01815.HK) rose 11.70%, Tongguan Gold (00340.HK) increased by 10.71%, and China Gold International (02099.HK) climbed 9.99%.

In terms of updates, data from the People’s Bank of China shows that by the end of March 2026, the official gold reserves stood at 74.38 million ounces, an increase of 160,000 ounces compared to the previous month. This marked the first monthly addition exceeding 100,000 ounces since March 2025. Currently, the People’s Bank of China has been consecutively increasing its gold holdings for 17 months.

International oil prices plummeted sharply, triggering a rebound in airline stocks.

By midday closing, shares of China Eastern Airlines (00670.HK) surged 8.06%, China Southern Airlines (01055.HK) rose 5.68%, and Air China (00753.HK) gained 5.42%.

In terms of market updates, during the early trading hours in the Asia-Pacific region on Wednesday, the decline in WTI crude oil futures widened to 19% at one point, and it is still down over 14%.

It is worth noting that as a major cost component for airlines, a significant drop in aviation fuel costs will directly improve profit expectations for airlines, thereby driving up stock prices. The market’s anticipation of reduced cost pressures on airlines became the core logic behind today’s strong performance of airline stocks.

The plunge in oil prices triggered adjustments in energy-related stocks, with Shandong Molong falling more than 6%.

Affected by the sharp decline in international oil prices, coal stocks collectively fell. By midday closing, Yancoal Australia (03668.HK) dropped 6.50%, Yankuang Energy (01171.HK) fell 5.66%, and China Coal Energy (01898.HK) declined 2.50%.

Meanwhile, the declines in oil and related stocks were even more pronounced. By midday closing, BHOC Oilfield Services (02178.HK) fell 13.56%, Shandong Molong (00568.HK) dropped 11.26%, CNOOC (00883.HK) declined 3.55%, and Yanchang Petroleum International (00346.HK) fell 3.53%.