SHANGAHI: Chinese stocks fell on Monday as the deepening Iran war curbed risk appetite and heightened uncertainty ahead of a highly anticipated March meeting between the Chinese and US presidents. Hong Kong stocks rebounded after three consecutive days of declines as traders await results from heavyweights Tencent and Alibaba in a busy earnings week. China’s blue-chip CSI300 Index fell 0.6% by the lunch break, while the Shanghai Composite Index lost 0.7%. Hong Kong’s Hang Seng rose 1%. Investors remain edgy as there’s no sign of a quick end to the Middle East conflict that has roiled global markets and sent oil prices soaring. On Sunday, US officials predicted that the US-Israeli war on Iran would end within weeks, but Iran said it remained “stable and strong” and ready to defend itself. Although soaring oil prices driven by the unfolding Iran conflict will help China in its fight against deflation, it also means higher input costs for China’s industrial sector and weaker global demand. “Cost-push inflation in an environment of weak demand does China little good,” Gavekal Dragonomics analysts Thomas Gatley and Wei He wrote. Higher energy prices “will put downward pressure on real growth.” The Iran situation also complicates outcomes of the upcoming summit between US President Donald Trump and Chinese President Xi Jinping later this month. “Recent developments, especially in the Middle East, have added complexity to the outlook for the meeting,” Morgan Stanley said in a note to clients. If the summit is cancelled or postponed, “we believe this would heighten market concerns over rising inflation and a further growth slowdown globally.” Gold related shares tumbled in China as reduced bets on US rate cuts eroded the yellow metal’s appeal. Metal and tech shares also suffered heavy losses as investors swarmed into defensive plays such as consumer and banking stocks. In Hong Kong, tech shares rebounded after heavy sell-offs recently.‑Reuters