The Hang Seng Index fell about 0.5% to close at 25,752 on Thursday, retreating from the previous session’s rally as Asian markets turned cautious. Sentiment was weighed down by fragility and tensions in the Middle East, which continue to drive volatility in oil prices and raise concerns that inflationary pressures could persist longer than expected. Iran’s move to restrict shipping and impose tolls in the Strait of Hormuz, an essential global oil route has further unsettled markets, posing risks to global economic growth and equity performance. On the data front, China’s March CPI and PPI are due on Friday, with inflation expected to ease to 1.2% from 1.3% and PPI to rebound 0.4% after a 0.9% drop, with the data key for Hong Kong stocks as it signals mainland demand and pricing power shaping earnings prospect for China-linked firms. Only the technology, energy minerals, and utilities sectors posted gains. Notable laggards included Xiaomi (-4.3%), Sinotruk (-2.8%), and Kuaishou (-3.6%).