Hong Kong stocks fall with Asia as Iran conflict drives oil prices higher

he Hang Seng Index retreated by the noon break on Monday.

Photo: Dickson Lee Hong Kong stocks dropped on Monday as escalating tensions in the Middle East sent oil prices to recent highs.

Over the weekend, Yemen’s Iran-backed Houthi rebels launched attacks directly on Israel, which intensified strikes on Tehran.

The US has also deployed additional military forces to the Middle East.

The escalation pushed up oil prices, with Brent crude jumping as much as 3.7 per cent to US$116.80 a barrel, its highest in more than a week, while West Texas Intermediate rose to US$101 a barrel.

The Hang Seng Index fell 0.9 per cent to close at 24,727.84 at the noon break.

The Hang Seng Tech Index dropped 1.7 per cent.

On the mainland, the CSI 300 Index retreated 0.2 per cent and the Shanghai Composite Index gained 0.2 per cent.

Markets across Asia declined.

Japan’s Nikkei 225 fell 3.4 per cent and South Korea’s Kospi slumped 3 per cent.

In Australia, the S&P/ASX 200 lost 0.7 per cent.

Asia faces the greatest exposure among energy importers.

In 2024, nearly 80 to 85 per cent of the oil and liquefied natural gas passing through the Hormuz Strait flowed to Asian markets, primarily China, India, Japan and South Korea, according to Lazard Geopolitical Advisory. “The market is anxious that sustained high oil prices will deliver a significant shock to both the future economy and investment markets,” said Kenny Ng Lai-yin, a strategist at Everbright Securities International.

Garment maker Shenzhou International led the declines, falling 5.5 per cent to HK$49.38, while home appliance maker Haier Smart Home dropped 4.2 per cent to HK$20.96.

Solar-panel maker Xinyi Solar fell 4.5 per cent to HK$3.

Limiting the losses, China Hongqiao Group, one of the world’s largest aluminium smelters, jumped 3.3 per cent to HK$35.62 and CK Infrastructure Holdings rallied 1.9 per cent to HK$62.60.

Chinese toymaker Pop Mart rallied 1.7 per cent to HK$152.20.

The Hang Seng Index has fallen 12 per cent from a late January high of 28,056.10.

Its weakness had been driven largely by geopolitical friction in the Middle East and disappointing tech earnings, Ng said.

But China’s stabilising economy could provide support for Hong Kong stocks, Ng added.

China’s exports surged 22 per cent in the first two months of the year compared with a year earlier, while the years-long property downturn showed signs of a tentative floor as new home prices in first-tier cities stabilised in February, halting

原文链接: 南华早报