Hong Kong stocks retreated by the most in nearly a year on Monday alongside risk assets in Asia, while oil and gold surged after the US strikes on Iran, reports the South China Morning Post. This comes as surging geopolitical risks sparked a risk-off mode among investors.

The Hang Seng Index closed 2.12% down at 26,067.27. At one point, the gauge dropped by as much as 2.8%, setting it on track for the biggest decline since April 7, 2025, when US President Trump’s “Liberation Day” tariff announcement sent the benchmark falling 13%.

On the mainland, the CSI 300 Index slipped 0.1% and the Shanghai Composite Index was little changed. Brent crude rose as much as 14% to $82.37 a barrel, heading for its highest level since January 2025, while spot gold rose 1.3% to $5,346.17 an ounce.

China sharply reduced tariffs on Canadian canola over the weekend, reports Caixin. The moves marks a major de-escalation in bilateral trade tensions following Canadian Prime Minister Mark Carney’s recent visit.

China’s Ministry of Commerce confirmed Saturday that it would impose a 5.9% anti-dumping duty on Canadian canola, effective March 1 and lasting five years. The rate is far below the provisional 75.8% deposit Beijing had required last year after a preliminary ruling found that Canadian exporters were selling at unfairly low prices.

A spokesperson said China has always preferred resolving trade differences through dialogue and had taken into account “reasonable concerns” raised by Ottawa before issuing its final ruling. China also suspended additional discriminatory tariffs on certain Canadian goods from March 1 through December 31.

China’s largest gold mining company Zijin Mining is acquiring Canadian miner Allied Gold in an all-cash deal valued at about C$5.5 billion (US$4 billion), reports the South China Morning Post. This is the first major cross-border transaction after Beijing and Ottawa recently reset ties after years of diplomatic strain.

Zijin Gold International, a Hong Kong-listed subsidiary of Zijin Mining, agreed to buy all issued and outstanding shares of Allied Gold for C$44 per share, according to a joint announcement on Monday.

The announcement follows Canadian Prime Minister Mark Carney’s recent visit to China–the first by a Canadian leader since 2017–during which he met President Xi Jinping. Carney said Canada was not pursuing a free trade deal with Beijing but was seeking to reduce its economic reliance on the US.

China’s largest gold mining company Zijin Mining is acquiring Canada’s Allied Gold in an all-cash deal valued at about $4 billion. This is the first major cross-border transaction since Canadian Prime Minister Carney’s recent visit to Beijing, which saw a thawing of several years of diplomatic tensions.

The announcement came as gold prices reached a record high, briefly topping $5,100 per ounce for the first time. As the uncertain geopolitical climate pushes demand for gold up, Chinese miners are viewing overseas acquisitions with increasing importance to offset limited domestic reserves.

Carney’s recent speech at Davos underscored a fundamental shift in geopolitics is underway, spurred on by Trump’s reshaping of international norms. Canada and other countries are clearly reviewing their relationship with China in view of the uncertainties and instability of the US.

China is set to ramp up imports of Russian oil in January, absorbing barrels that would have previously gone to India and Turkey, reports Reuters. This comes as tougher Western sanctions force Moscow to redirect flows, LSEG data and traders said.

China is due to receive nearly 1.5 million barrels per day (bpd) of Russian oil by sea this month, compared with 1.1 million bpd in December, according to preliminary LSEG data. 

Beijing, already a key consumer of Russian Far East ESPO Blend, also boosted imports of Russian Urals oil to a record high of 405,000 bpd in January, the highest since mid-2023, data provided by energy consultancy Kpler showed.