HONG KONG: China stocks closed largely flat in choppy trading on Monday while Hong Kong shares tumbled, as the escalating conflict in the Middle East continued to dent risk appetite in broader Asia markets.
The Shanghai Composite Index lost as much as 1 percent before recouping losses and closing 0.2 percent higher at 3,923.29.
The blue-chip CSI 300 Index dipped 0.2 percent.
Hong Kong’s benchmark Hang Seng Index fell 0.8 percent. The Hang Seng Tech Index lost 1.9 percent to its lowest level since April 2025.
Broader Asian equities declined, with MSCI’s Asia ex-Japan stock index weaker by 1.8 percent and Japan’s Nikkei index closing down 2.8 percent.
Hopes of Gulf peace talks were overshadowed by uncertainties as the US builds up ground troops, while attacks on Israel by Yemen’s Iran-aligned Houthis further complicated the war.
“With Middle East tensions rising over the weekend, markets now face headwinds from both geopolitical risks and weak technical signals, making a sharp turnaround unlikely for the near term,” analysts at Nanhua Futures said in a note.
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