China stocks mixed, Hong Kong slips as Hormuz reopening hopes fade
- The benchmark Shanghai Composite index eased 0.1%, while the blue-chip CSI300 index gained 0.2%
SHANGHAI: Mainland Chinese stocks were mixed, while Hong Kong shares edged lower on Tuesday, as investors reassessed prospects for an end to the US-Iran conflict that has boosted global oil prices.
At the midday break, the benchmark Shanghai Composite index eased 0.1%, while the blue-chip CSI300 index gained 0.2%.
The smaller Shenzhen index was up 0.4%, the start-up board ChiNext Composite index was higher by 1.4% and Shanghai’s tech-focused STAR50 index inched 0.2% higher.
US President Donald Trump on Monday responded to Iran’s conditions for a peace deal with his own demands that Iran pay compensation for people killed in wars, attacks and protests, in a rhetorical escalation likely to complicate efforts to reopen the Strait of Hormuz.
Oil prices steadied on Tuesday at more than one-week highs amid fading hopes of a deal between the US and Iran to end their war and reopen the Strait of Hormuz.
“Attacks on shipping and oil infrastructure in the Middle East over the weekend, together with Iran’s renewed demand for concessions and rejection of direct negotiation with US, added further uncertainty to the prospect of reopening the Strait of Hormuz,” analysts at OCBC said in a note.
In China, non-ferrous metal stocks led the declines in morning deals, with a sub-index tracking the sector falling 1.5%.
Chinese robot maker Unitree said on Monday its $900 million Shanghai initial public offering was more than 8,000 times oversubscribed by retail investors, reflecting investor fever.
In Hong Kong, the benchmark Hang Seng index lost 0.6%, and the city’s tech shares dropped 1.3%.
Separately, investors awaited signals from US inflation data due later this week for more clues on how the Iran conflict has fanned price pressures, which could affect the Federal Reserve’s policy outlook after last week’s weak employment report tempered rate hike expectations.