Hong Kong stocks extend losses as US and Iran dig in heels amid escalating conflict
Stopping Iran from having nuclear weapons and threatening the Middle East is of ‘far greater interest and importance to me’, Trump says
Hong Kong stocks extended losses on Friday as the US-Iran war showed no signs of ending, with a hardline stance from both sides pushing oil prices up.
The Hang Seng Index closed 1 per cent lower at 25,465.60, taking its loss to 4 per cent since the war started on February 28. The Hang Seng Tech Index also fell 1 per cent. On the mainland, the CSI 300 Index lost 0.4 per cent and the Shanghai Composite Index shed 0.8 per cent.
US President Donald Trump said in a social media post on Thursday that stopping Iran from having nuclear weapons and threatening the Middle East was of “far greater interest and importance to me”.
Iran’s new Supreme Leader Mojtaba Khamenei said in his first public comments since succeeding his father that Iran was studying the possibility of “opening other fronts in areas where the enemy has little experience and would be highly vulnerable”, without elaborating.
“Supply chain disruption worries, not just the oil shock, have started to weigh down markets, as Middle East geopolitical tensions increase,” said Wang Qi, chief investment officer at UOB Kay Hian’s wealth management division in Hong Kong.
Since the start of the war, the Strait of Hormuz, a critical chokepoint for about 20 per cent of global oil flows, has virtually been closed. Early this week, Iraq announced the closure of its oil ports after two tankers were attacked.
Oil prices surged after falling earlier this week. Brent crude traded at US$102.52 a barrel and West Texas Intermediate stood at US$98.58.