China’s stocks mixed, Hong Kong slips as Hormuz reopening hopes fade
Attacks on Middle East shipping and oil infrastructure, along with Iran's renewed demands and rejection of direct US talks, added uncertainty over reopening the Strait of Hormuz.
Hong Kong's benchmark Hang Seng Index fell 0.6%, with technology shares dropping 1.3%, on Tuesday. Mainland Chinese stocks experienced mixed results, while Hong Kong shares edged lower as investors reconsidered the prospects for ending the US-Iran conflict and consequently, the boost in oil prices.
The Shanghai Composite Index fell 0.1%, while the blue-chip CSI300 index gained 0.2%. The smaller Shenzhen index rose by 0.4%, while the ChiNext Composite index increased by 1.4%. Shanghai's tech-focused STAR50 index also showed a slight increase of 0.2%.
On Monday, US President Donald Trump responded to Iran's conditions for a peace deal by demanding compensation for those killed in wars, attacks, and protests. This rhetorical escalation could hinder efforts to reopen the Strait of Hormuz. Fading hopes for a US-Iran deal and continuous attacks on shipping and oil infrastructure in the Middle East have contributed to the uncertainty surrounding the Strait's reopening, according to analysts at OCBC.
In China, non-ferrous metal stocks led the declines in early trading, with the sector's sub-index falling 1.5%. Unitree, a Chinese robot maker, recently held its US$900 million Shanghai initial public offering, which was more than 8,000 times oversubscribed by retail investors, showcasing strong investor interest. Investors in Hong Kong are now looking for clues from upcoming US inflation data, which could shed light on the impact of the Iran conflict on price pressures and potentially affect the Federal Reserve's policy decisions following last week's weak employment report that dampened rate hike expectations.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.