SHANGHAI: China and Hong Kong shares fell on Thursday as investors turned risk-averse amid escalating tensions in the Middle East.
China’s blue-chip CSI300 Index and the Shanghai Composite Index lost 0.8% each. Hong Kong benchmark Hang Seng was down 1.1%.
Risk sentiment weakened after Iran seized two ships in the Strait of Hormuz on Wednesday, tightening its grip on the strategic waterway a day after U.S. President Donald Trump announced he was indefinitely calling off attacks, with no sign of peace talks restarting.
Non-ferrous metals shares lost 4.1%, leading declines onshore, while energy stocks rose 2.4% to a two-week high. The coal index was up 1.9%.
Semiconductor stocks fell 2.5%, after Reuters reported Micron Technology, the largest U.S. memory chipmaker, pushed the U.S. Congress to crack down on chip tool sales to Chinese rivals.
Consumer names outperformed, with onshore liquor shares up 2.1%.
“Although traditional consumer segments have not performed well, structural opportunities do exist,” said Wenli Zheng, a portfolio manager at T. Rowe Price.
“These include companies exposed to faster-growing segments such as travel and entertainment and share gainers with innovative business models such as discount stores and fresh drinks,” Zheng said.
In Hong Kong, tech majors fell 2.3% and healthcare dropped 3.4%.
Shares of Huaqin, a Chinese smart device maker and original design manufacturer, climbed 17% in the Hong Kong market debut on Thursday after the company raised HK$4.6 billion ($581 million) in a share offering.
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