HK stocks edge up as war fears fuel energy plays

Hong Kong and mainland stocks maintained a relatively stable performance on Tuesday as artificial intelligence and technology shares declined, while energy stocks gained from Middle East tensions. The Hang Seng Index closed up 17 points, or 0.1%, at 25,471 on a trading volume of HK$255.54 billion. The tech index dropped 42 points, or 0.9%, to 4,739.

Meanwhile, the Shanghai Composite Index increased by seven points, or 0.19%, to 3,990. The Shenzhen Component Index fell 81 points, or 0.56%, to 14,622. The ChiNext Index declined 34 points, or 0.92%, to 3,705. Changxin Technology, a memory chip maker, saw a 4.2% decrease following a 12% rise on Monday. Analysts at Huaan Securities anticipate the AI supply chain to continue to grow, with strong performance likely to be confirmed during the mid-August earnings period.

Despite broad declines, oil and coal stocks rose as stalled talks to end the US-Iran conflict and fears of an imminent escalation led to higher oil prices. PetroChina increased by more than two percent. Onshore consumer staples shares rose 0.9% despite data indicating China's economy slowed in the second half, with industrial output and retail sales declining due to adverse weather and weak domestic demand.

With major consumer-sector firms reporting earnings this week, UBS analysts noted that the results will be closely monitored for further insights into demand trends. The robot industry index gained 2.5%, with Leader Harmonious Drive Systems up 5.1%, ahead of humanoid-robot giant Unitree's market launch on Wednesday. In Tokyo, the Nikkei share average dropped 1,759 points, or 2.5%, to 67,460 after the Middle East conflict drove up oil prices and increased concerns about bond market risks and inflation.

The Topix fell 44 points, or 1.1%, to 4,140. In Seoul, the Kospi ended 108 points, or 1.55%, lower at 6,869 after reaching a one-month high earlier.