Geopolitical risks plummeted, tech stocks rebounded, E Fund Asia Semiconductor ETF surged over 9%

The easing of geopolitical tensions in the Middle East has led to a strong recovery in global risk assets, with Hong Kong stocks and the technology sector surging across the board. Several technology-themed ETFs under E Fund Hong Kong led the market gains, among which the E Fund Asia Semiconductor ETF (3486) rose over 9% in a single day, while the E Fund AI ETF (3489) and the E Fund Digital Technology ETF (3434) both surged over 5%.

From April 7th to 8th local time, the United States and Iran reached a two-way ceasefire agreement for two weeks. Iran's Supreme National Security Council simultaneously announced that the Strait of Hormuz will be safe for navigation within two weeks. Subsequently, international oil prices plummeted, with Brent crude futures falling over 16% and WTI crude plunging nearly 19%, as geopolitical risk premiums rapidly dissipated. Market sentiment reversed accordingly, with risk aversion cooling rapidly, opening a window for a comprehensive recovery in global stock markets and technology growth stocks. Hong Kong stocks opened higher and continued to rise, with the Hang Seng Tech Index climbing strongly by 3.5%.

In the short term, the Middle East ceasefire agreement and the sharp drop in oil prices have significantly weakened the uncertainties that previously weighed on the market, creating a favorable environment for the recovery of risk assets. In the medium term, high-quality technology sectors such as Asian semiconductors, AI, and digital technology are still in a period of high industrial prosperity, and the long-term development logic of the industry remains unchanged. After this round of geopolitical disturbance subsides, the technology growth style is expected to become the market's main theme again. E Fund's Asia-focused technology ETF products, with their forward-looking sector allocation, high sector purity, and professional management capabilities, will provide investors with efficient tools to capture opportunities in the technology growth rebound.