Shares in Hong Kong, the mainland and other parts of Asia tumbled at the open of trade on Wednesday, as surging oil prices due to the war against Iran raised concerns over inflation while adding to the risks of a global economic slowdown.

The Hang Seng Index lost 298.74 points, or 1.16 percent, to open at 25,469.34 points, while the Hang Seng Tech Index lost 0.2 percent.

On the mainland, the benchmark Shanghai Composite Index opened lower by 0.85 percent at 4,087 points, while the Shenzhen Component Index lost 1.2 percent at the opening bell and stood at 13,854 points.

The turmoil in the Middle East had an effect on other Asian markets too.

South Korea's stock exchange halted trading on Wednesday as the nation's two major indexes plunged on uncertainty sparked by the outbreak of war.

The Korean Stock Exchange called a temporary trading halt after the Kospi and Kosdaq each plunged more than eight percent in Seoul morning trade.

In Japan, the Nikkei 225 was down by more than three percent.

The declines came as Brent oil prices continued to surge amid the widening conflict in the Middle East, increasing by 1.3 percent to US$82.46 a barrel.

Higher oil prices have weighed on stocks and other assets, as investors trimmed their exposure on concerns that it would fuel inflation and force the US Federal Reserve to delay lowering interest rates.

Benchmark crude is up roughly 30 percent so far this year, threatening to lift jet fuel costs and squeeze airline profits. (Xinhua/AFP)


Edited by Tony Sabine