SHANGHAI: Mainland China and Hong Kong stocks ended lower on Thursday, as escalating Middle East tensions rekindled concerns over higher oil prices and inflationary pressures.
At the close, the benchmark Shanghai Composite index dropped 0.4 percent, while the blue-chip CSI300 index lost 0.5 percent.
The smaller Shenzhen index fell 1 percent, the startup board ChiNext Composite index slipped 0.5 percent and Shanghai’s tech-focused STAR50 index eased 0.7 percent.
A shares turnover stood at 1.65 trillion yuan (USD246.05 billion) on Thursday, the lowest since April 7.
In Hong Kong, the benchmark Hang Seng index fell 1.3 percent, while the city’s tech shares dropped 2 percent.
Asian stocks slid as the biggest wave of attacks on shipping in the war with Iran kept oil prices above USD100 a barrel.
Meanwhile, traders and analysts are anxiously awaiting US inflation data due later this week, seeking fresh clues on the Federal Reserve’s policy outlook and its potential impact on global financial markets.
“September FOMC decision remains a close call as investors await US CPI release,” analysts at OCBC Bank said in a note.
The yield premium of the 10-year US Treasury over its Chinese counterpart widened to the highest level on record, driven by a surge in US yields amid worries that rising oil prices could fuel inflation.
US companies in China have grown more optimistic about their business prospects after confidence hit a record low last year amid political tensions, intense competition and slowing economic growth, a survey showed on Thursday.
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