HK stocks open up amid caution over US-Iran gulf

On Tuesday, regional stocks experienced mixed openings, reflecting cautious market sentiment due to the Middle East conflict. In Hong Kong, the Hang Seng Index began at 25,998, climbing 61 points, or 0.24 percent, before plummeting 94 points, or 0.37 percent, to 25,842. The technology index saw a 13 point increase, or 0.27 percent, at 4,932, while the China Enterprises Index rose 32 points, or 0.37 percent, to 8,654.

On the mainland, the Shanghai Composite Index started at 3,950, dropping 15 points, or 0.4 percent, to 3,950, while the Shenzhen Component Index fell 50 points, or 0.35 percent, to 14,266, and the ChiNext Index declined three points, or 0.09 percent, to 3,533. With the Tokyo Nikkei closed for a holiday, the Seoul Kospi opened 59 points, or 0.95 percent, lower at 6,240 before recovering to 6,339, or 0.64 percent, higher.

The overall market sentiment was negatively impacted following US President Donald Trump's response to Iran's conditions for a peace deal, which included demands for Iran to pay compensation for casualties in conflicts, attacks, and protests. This rhetoric led to a five percent increase in oil prices. Analyst Steve Sosnick of Interactive Brokers noted that investors have been optimistic about potential ceasefire progress since April, but market reactions are more influenced by the bond and oil markets' disappointment with the lack of progress.