[ET Net News Agency, 10 April 2026] US-Iran negotiations are imminent, and both sides
have launched a war of words, focusing primarily on whether Lebanon should be included in
the ceasefire agreement and Iran's right to possess enriched uranium. However, US
President Trump stated that he remains optimistic about reaching a peace agreement with
Iran, leading US stocks to stop their decline and rebound. Asia-Pacific stock markets
followed suit across the board except for Australia and New Zealand. After the HSI opened
more than 100 points higher, it gained momentum in the early session and briefly reclaimed
the 26,000 level intraday. The gains subsequently narrowed, and the market closed the half
day at 25,910, up 157 points or 0.6%, with main board turnover exceeding HKD 124.7
billion. The HSCEI stood at 8,665, up 53 points or 0.6%. The Hang Seng Tech Index stood at
4,873, up 51 points or 1.1%.

"Jaseper Tsang: Peace talk process remains bumpy, HSI faces resistance at 26,200 points"

It is reported that Israel has agreed to peace talks with Lebanon, suggesting signs of
easing in the Middle East situation. Jaseper Tsang, Vice-Chairman of the Hong Kong
Institute of Financial Analysts and Professional Commentators Limited, told ET Net News
Agency that the biggest variable in the current US-Iran peace talks is Israel. Based on
the current terms of the US-Iran peace talks, Israel has not gained any practical
benefits. Instead, Israel will place more importance on whether it can eliminate the
influence of Iranian proxy forces in its vicinity; therefore, the outcome of the peace
talks remains unknown.
With the Middle East situation in a stalemate, Jaseper Tsang believes that although oil
prices have adjusted downwards, they will still hover before the 100 US dollar mark. Under
the continuous heating up of inflation expectations, the shadow of stagflation lingers,
and long-term investment capital remains on the sidelines. The HSI gains are limited, with
resistance expected at 26,200 points.

"Deflation in Mainland China eases, consumer staples may continue to outperform"

The National Bureau of Statistics announced today the Consumer Price Index (CPI) and
Producer Price Index (PPI) data for March in Mainland China. The March CPI rose 1% year on
year, a slowdown of 0.3 percentage points from the previous month; the PPI ended a decline
of over three years, rising 0.5% year on year. Jaseper Tsang stated that current
international energy prices remain high and inflation expectations are rising, which helps
Mainland China move away from a deflationary situation. Domestic demand consumption, such
as food stocks, may benefit from the improved deflationary state and is expected to
outperform the market in the future. However, consumers have not yet escaped the negative
wealth effect, and consumption sentiment remains low; luxury consumer stocks are expected
to find it difficult to benefit and may even come under pressure.

"Mainland China electric vehicle "involution" becomes the norm, market offloads NIO on
good news"

NIO (09866) opened nearly 7% lower this morning, with the decline narrowing to about 6%
at the midday close. NIO announced its new electric flagship SUV, the "ES9", last night,
which will be officially launched and open for pre-orders in Hangzhou. The ES9 Executive
Luxury Edition, purchased via the BaaS (Battery as a Service) model, has a pre-order price
starting from RMB 420,000. The new NIO vehicle features over 40 industry-first
technologies and is claimed to be the culmination of eleven years of system innovation at
NIO. Jaseper Tsang explained that NIO's earlier gains were mainly driven by market
speculation surrounding the launch of the new car. However, the current "involution" in
the Mainland China electric vehicle market is increasing rather than decreasing, and
competition has entered a white-hot stage. Sales at several car companies are under
pressure, and the market generally does not believe the launch of NIO's new car will
significantly improve sales data. Investors instead took advantage of the positive news to
sell, putting pressure on NIO's share price.