At the Hong Kong open the HSI fell 0.13% and the Hang Seng Tech Index fell 0.25%. Oil names outperformed; PetroChina (00857.HK) rose 3.57%. International oil prices recently recorded their largest one-day gain in six years.

WALLER said uncertainty in parts of the labor market earlier this year has been resolved and the situation has seen a remarkable reversal.

Barclays analysts said rising oil prices — after US strikes on Iranian targets and Iranian attacks on ships transiting the Strait of Hormuz at the weekend — could prompt Bank of England MPC members to signal a bias toward rate hikes in coming months. They warned escalating Middle East tensions and this week’s oil gains raise the risk of stronger inflationary pressure, a focus for MPC members. LSEG data shows markets have fully priced a 25bp hike in 2026 and assign a 28% probability of an additional 25bp by year-end.