Hong Kong stocks declined in the first trading session after the Lunar New Year holiday, with the three major indices closing lower. The Hang Seng Index dropped 1.1%, or 292.59 points, to finish at 26,413.35, while the Hang Seng Tech Index fell 2.91% to 5,211.5. Turnover totaled HK$165.37 billion.

Financial Secretary Paul Chan, speaking at the Hong Kong Exchanges and Clearing's market-opening ceremony, expressed confidence in the city's resilience. He emphasized that despite a complex and volatile global environment, Hong Kong's commitment to an open investment climate and stable financial policies would continue to attract international investors.

Among blue-chip stocks, PetroChina (00857) led gains, rising 3.7% to HK$9.52 and contributing 11.57 points to the Hang Seng Index. The increase followed a spike in oil prices driven by escalating Middle East tensions. Reports indicated the U.S. government was considering limited military action against Iran to pressure the country into accepting nuclear agreement terms.

Other notable gainers included Henderson Land (00012), which advanced 3%, and Midea Group (00300), up 2.73%. In contrast, Alibaba-W (09988) fell 4.91%, weighing heavily on the index, while SMIC (00981) declined 3.15%.

Sector performance was mixed. Robotics-related stocks surged after robot performances during the Lunar New Year Gala captured public attention. Dobot (02432) jumped 21.4%, and RoboSense (02498) climbed 9.24%. JD.com reported that searches for robots on its platform increased over 300% during the two-hour broadcast.

AI large-language model developers also performed strongly. Knowledge Atlas (02513) soared 42.72%, and MINIMAX-WP (00100) rose 14.52%, with both companies' market capitalizations exceeding HK$300 billion. Recent model upgrades and subscription price increases signaled a shift toward monetization in the domestic AI sector.

Oil stocks advanced amid geopolitical concerns. CNOOC (00883) and COSL (02883) rose 2.23% and 3.2%, respectively, as WTI crude futures reached their highest level since August.

Technology and internet stocks remained under pressure. Tencent (00700) fell 2.06%, with analysts noting a lack of near-term catalysts and subdued southbound trading support.

In individual movers, RoboSense (02498) gained 9.24% after forecasting a narrowed net loss for 2025 and reporting its first quarterly profit in Q4. COSCO SHIP ENGY (01138) rose 6.34% as rising tensions in the Middle East buoyed shipping rates. Meanwhile, SSY GROUP (02005) fell 5.63% after issuing a profit warning, citing weaker drug sales and intensified competition.