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Cao Li

Hong Kong stocks extended declines on Tuesday after panic selling gripped global markets, as the US-Iran war kept investors on edge and surging oil prices fuelled inflation concerns.
The Hang Seng Index closed 1.1 per cent lower at 25,768.08 after losing 2.1 per cent on Monday. The Hang Seng Tech Index fell 2.3 per cent.
On the mainland, the CSI 300 Index slid 1.5 per cent and the Shanghai Composite Index fell 1.4 per cent.
Tensions between the US, its allies and Iran have disrupted global oil supplies, driving prices higher and weighing on Asian markets.
South Korea’s Kospi slumped 7.2 per cent, while Japan’s Nikkei 225 fell 3.1 per cent and Australia’s S&P/ASX 200 dropped 1.3 per cent.
Solar-panel maker Xinyi Solar shed 6.3 per cent to HK$3.11, while gold miner Zijin Mining Group dropped 6.1 per cent to HK$43.22. Toymaker Pop Mart International fell 5.5 per cent to HK$212.60 and sportswear maker Li Ning slid 5.3 per cent to HK$20.80.
Trimming losses, ENN Energy Holdings, one of China’s largest natural gas distributors, rose 5.1 per cent to HK$71.85.
PetroChina, the listed arm of China’s biggest oil producer China National Petroleum Corporation, advanced 5 per cent to HK$10.43, while Orient Overseas (International), the parent of one of the world’s largest container-shipping companies, added 2.9 per cent to HK$157.80.

Iran, which produces about 4 per cent of the world’s crude oil, has virtually shut the Strait of Hormuz – through which about a fifth of the world’s shipments of oil and gas flow – after the war broke out during the weekend.
Asia has the greatest exposure among importers, as nearly 80 to 85 per cent of oil and liquified natural gas transiting the strait flowed to Asian markets in 2024, primarily China, India, Japan and South Korea, all of which rely heavily on Gulf energy imports, according to Lazard Geopolitical Advisory.
“China’s reliance on imported crude, especially given nearly half of its crude oil imports move through the Strait of Hormuz, exacerbates its growth impact. Under this scenario, it would face a 0.5 percentage point reduction in growth and a similar increase in inflation,” the firm said in a note on Tuesday.
Market impact largely hinges on the scale of oil-supply disruption, according to DWS Group. “It matters most whether the strike leads to a prolonged disruption to supply or just a short-term shock,” the firm said in a report published on Tuesday.
Depending on different scenarios, the results could be short-lived logistics friction to impairment or even blockage of transit, analysts said.
“The oil shock hurts everyone, but China’s domestic policy matters far more than geopolitics right now,” said Wang Qi, chief investment officer at UOB Kay Hian’s wealth management division in Hong Kong.
China’s annual parliamentary meetings, known as the “two sessions”, will begin on Wednesday and are expected to address the growth target and economic policies, among other issues.
“A meaningful stimulus is still needed to stabilise property and revive consumption,” said Wang.
Additional reporting by Aileen Chuang


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Risk-off sentiment is seen across major Asia-Pacific markets, with South Korea’s Kospi benchmark falling 7.2 per cent


Risk-off sentiment is seen across major Asia-Pacific markets, with South Korea’s Kospi benchmark falling 7.2 per cent.


Hong Kong stocks slide for a second day as US-Iran war rattles sentiment

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Risk-off sentiment is seen across major Asia-Pacific markets, with South Korea’s Kospi benchmark falling 7.2 per cent

Risk-off sentiment is seen across major Asia-Pacific markets, with South Korea’s Kospi benchmark falling 7.2 per cent