Hong Kong stocks take hit from escalating Iran conflict after US strike, Hormuz threat
Hong Kong
stocks retreated on Monday as the US attack on Iran's nuclear facilities escalated the military conflict in the Middle East, weighing on appetite for risk assets and fuelling concerns about disruption of global oil supply.
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The Hang Seng Index fell 0.8 per cent to 23,349.92 as of 10.04am. The Hang Seng Tech Index dropped 0.9 per cent.
On the mainland, the CSI 300 Index slid 0.3 per cent, and the Shanghai Composite Index shed 0.1 per cent.
Wuxi Biologics slumped 3.3 per cent to HK$23.30, and Techtronic Industries lost 2.9 per cent to HK$82.25. Alibaba Group Holding fell 2.2 per cent to HK$109.20, while Tencent Holdings slipped 1.6 per cent to HK$497.
Oil futures surged after US President Donald Trump said air attacks had 'obliterated' the trio of targets in Iran and threatened more military action if Iran did not make peace. Iran threatened to close the Hormuz Strait, which controls one third of the world's oil shipments.
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Higher oil prices raise the risk of global inflation and will complicate the task of the Federal Reserve to curb rising consumer prices. In the rate decision meeting last week, Fed Chair Jerome Powell highlighted the peril of tariff-induced price increases.
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