Hang Seng Index slips amid tech hit for mainland

Hong Kong stocks dipped on Tuesday as Middle East tensions escalated. The Hang Seng Index closed 95 points, or 0.4 percent, lower at 25,317 after a trading volume of HK$206.17 billion. The technology index fell 72 points, or 1.6 percent, to 4,454, while the China Enterprises Index decreased by 32 points, or 0.4 percent, to 8,397.

Shanghai shares, however, saw a slight increase, led by agricultural, energy, and gold stocks. The Shanghai Composite Index ended up seven points, or 0.2 percent, at 3,940 with a turnover of 915.56 billion yuan. The blue-chip CSI 300 Index, on the other hand, reversed its early gains and dropped 0.4 percent. Both indices have recently stabilized following a mid-year selloff that erased this year's gains.

The Shenzhen Component Index declined 71 points, or 0.52 percent, to 13,703, while the ChiNext Index fell 38 points, or 1.15 percent, to 3,359. An index tracking China's agriculture-related shares surged 4.3 percent after the central government announced plans to increase funding for rural revitalization. Energy shares also rose as Middle East tensions drove up oil prices.

Traders are keeping an eye on upcoming US inflation data, which could impact the Federal Reserve's next policy decision. Meanwhile, Chinese mainland gold stocks gained as the metal advanced, and the US dollar weakened. James Luke, a portfolio manager at Schroders, noted that structural forces supporting gold prices remain strong due to increasing US fiscal pressure.

In Tokyo, the Nikkei 225 index fell 1,130 points, or 1.7 percent, to 65,269 due to heightened geopolitical tensions and a sudden yen surge affecting exporters. The Topix index also dropped 75 points, or 1.83 percent, to 4,050. In Seoul, the Kospi ended the day down 40 points, or 0.58 percent, at 6,954 after achieving a three-week high earlier in the day. Retail investors took profits after three consecutive sessions of gains.