Business Recorder
SHANGHAI: China and Hong Kong stocks fell on Thursday, as markets reassessed the prospects for a short-term ceasefire after renewed violence in the US-Israeli war with Iran. China’s blue-chip CSI300 Index dropped 0.6% by the lunch break, while the Shanghai Composite Index lost 0.7%. The Hong Kong benchmark Hang Seng was down 0.4%. Israel pounded Lebanon with its heaviest strikes yet on Wednesday, killing hundreds of people and drawing a threat of retaliation from Iran, which suggested it would be “unreasonable” to proceed with talks to forge a permanent peace deal with the United States. “The two-week ceasefire is barely a day old, and it seems there are already cracks forming, even as financial markets remained relatively buoyant,” said analysts at MUFG. Consumer staple and financial shares led declines onshore, down 1.4% and 1.3%, respectively. Energy shares rebounded onshore and offshore , up 0.3% and 0.6%, respectively, as oil prices rose. Tech giants listed in Hong Kong reversed gains to fall 1.3%. Analysts at BOC International saw a rebound and an allocation opportunity in China’s non-ferrous metals sector. Frequent geopolitical flare-ups have fragmented supply, while rigid resource supply and shifts in the global monetary landscape - seen as weakening the dollar-centric credit system - could jointly catalyse both the industry outlook and the asset’s financial appeal, the analysts said. Investors are awaiting China’s first-quarter inflation print due on Friday to gauge domestic demand.
Go to News Site