SHANGHAI: Chinese and Hong Kong shares closed down 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 both ended 0.3 percent lower. Hong Kong benchmark Hang Seng was down 1 percent.
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 US President Donald Trump announced he was indefinitely calling off attacks, with no sign of peace talks restarting.
Non-ferrous metals shares lost 3.9 percent, leading declines onshore, while energy stocks rose 2.9 percent to a two-week high. The coal index was up 2.2 percent.
Semiconductor stocks fell 1.6 percent, after Reuters reported Micron Technology, the largest US memory chipmaker, pushed the US Congress to crack down on chip tool sales to Chinese rivals.
Consumer names outperformed, with onshore liquor shares up 2.1 percent.
“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 percent and healthcare dropped 3.4 percent.
Shares of Huaqin, a Chinese smart device maker and original design manufacturer, climbed 17 percent in the Hong Kong market debut on Thursday after the company raised HKD4.6 billion (USD581 million) in a share offering.
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