Hong Kong stocks gyrate amid escalating Iran conflict after US strike, Hormuz threat
Oil futures surge after US President Donald Trump says attacks ‘obliterated’ targets and Iran threatens to close key oil shipping route
The Hang Seng Index climbed 0.7 per cent to 23,689.13 at the close, reversing a loss of more than 1 per cent. The Hang Seng Tech Index advanced 1.1 per cent. On the mainland, the CSI 300 Index gained 0.3 per cent, while the Shanghai Composite Index added 0.7 per cent.
CNOOC rallied 1.1 per cent to HK$18.10 and China Petroleum and Chemical, also known as Sinopec, advanced 0.3 per cent to HK$4.05. Gold producer Zijin Mining Group added 0.4 per cent to HK$19.26, while shipping line Orient Overseas International gained 3.3 per cent to HK$137.80. Semiconductor Manufacturing International jumped 4.6 per cent to HK$41.30 on expectations that China will increase support for the chip industry after a media report that the US is mulling fresh tech restrictions.
“Markets are already building in a fatter geopolitical risk premium,” said Stephen Innes, a managing partner at SPI Asset Management in Bangkok. “This market will reprice everything once again. Traders are likely to remain in oil market tail risk hedges until a peace pipe starts making the rounds.”
A shutdown of the Hormuz Strait would probably raise oil prices to as high as US$120 a barrel, he added.