Hong Kong's three major stock indices closed the morning session mixed on October 26. The Hang Seng Index rose 0.44% to 23,066.79, the Hang Seng Tech Index fell 0.37%, and the China Enterprises Index gained 0.5%.

Among internet-related stocks, decliners outnumbered gainers. Lenovo Group Ltd (ASX: 00992) fell more than 3%, JD.com Inc (ASX: 09618) slipped 0.66%, while Meituan (ASX: 03690) advanced more than 3%.

Oil stocks rose broadly, with PetroChina (ASX: 00883) climbing over 4%. Ping An Securities noted that geopolitical deadlock in the Middle East is unlikely to ease in the near term, with rising risks in both the U.S.-Iran and Yemen situations, deteriorating security in the Strait of Hormuz, and an increased probability of a new round of U.S. military strikes on Iran. At the same time, the Yemen situation is spiraling upward, with Houthi forces continuing to attack airports and oil facilities inside Saudi Arabia, significantly affecting Saudi crude exports and refining operations. In summary, we believe geopolitical risks continue to provide strong support for international oil prices.

Gold stocks led declines, with Zijin Mining Group Company Limited (ASX: 02899) falling more than 5%. In early trading on October 26, London spot gold briefly fell below $3,978.39 per ounce, touching a recent low during the session. The sharp pressure on gold prices this round was driven by three main factors: persistently surging international energy prices, renewed inflation concerns, and expectations of a more hawkish Federal Reserve monetary policy stance.

Chip stocks weakened, with Hua Hong Grace Semiconductor Limited (ASX: 01347) dropping more than 4%. As market concerns over the AI outlook intensified, global AI technology stocks experienced notable volatility. In response, international investment bank Nomura said the market's worries about artificial intelligence investment prospects are "overreacting," that the memory chip shortage will persist until 2028, and that the memory sector's valuation has been severely undervalued.