The Hang Seng lost 385 points or 1.4% to close at 26,381 on Thursday, swinging from strength in the prior session amid a notable drop in U.S. futures after Nvidia's earnings failed to impress markets, and geopolitical tensions between the U.S. and Iran persisted. Meanwhile, mainland stocks were subdued, with investors cautious ahead of China’s annual legislative meeting in March. Still, losses were capped by Hong Kong’s 2027 budget, projected to post its first surplus in four years on higher profits tax and stamp duties. Meanwhile, Shanghai eased further home purchase rules for non-residents. Tech and consumer stocks each slid over 2%, while declines in financials and property were moderate ahead of February PMI data, due next week. Galaxy Ent. dipped 3.9% despite stronger 2025 profits, while Kuaishou Tech (-3.8%), Pop Mart Intl. (-3.4%), and Meituan (-2.6%) also lagged. In contrast, HKEX rose 0.5% after reporting higher Q4 profit and revenue on robust listings and trading activity.