Shanghai stocks closed at a 10-year high on Monday, bucking regional weakness in the wake of the Iran conflict as investors snapped up energy, gold and defence shares.

In Hong Kong, however, the benchmark Hang Seng Index plunged 570 points, or 2.14 percent, to end the day at 26,059, a two-month low.

Energy was the only major sector in positive territory.

Tech, healthcare and tourism were among the biggest decliners.

Crypto ETFs listed in Hong Kong fell.

Up north, the benchmark Shanghai Composite Index ended up 19 points, or 0.47 percent, at 4,182, the highest close since June 2015.

The Shenzhen Component Index closed 29 points, or 0.2 percent, lower at 14,465 while the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 0.49 percent to close at 3,294.

The combined turnover of the main Shanghai and Shenzhen indexes was 3.02 trillion yuan, up from 2.49 trillion yuan on Friday.

Shares of Air China fell more than three percent in ⁠both Hong Kong and Shanghai.

Mainland-listed shares of China Southern Airlines and China Eastern Airlines also tumbled.

Mainland stocks in the oil and gas exploration and precious metals sectors led gains while digital marketing and computer shares were among the biggest losers.

Mainland sentiment was supported by expectations that Beijing may step in to steady markets ahead of a parliamentary meeting later this week.

Kevin Liu, a strategist ⁠at CICC Research, said the impact of any geopolitical conflict would likely be fleeting.

"It does not alter the original trend determined by macro fundamentals," he said.

Investors piled into Chinese energy companies after oil prices surged, sending the shares of oil ⁠giants CNOOC, PetroChina and China Petroleum & Chemical Corp sharply higher.

"If the conflict intensifies, we can expect gold to remain strong while bitcoin becomes more vulnerable," said Jeff Ko, chief analyst at crypto exchange CoinEx.

While Beijing frequently stepped in to support onshore markets, Hong Kong, by contrast, "often acts as a shock absorber," he added. (Reuters/Xinhua)


Edited by Tony Sabine