Mainland and Hong Kong stocks ended the week lower, despite Friday's gains, as geopolitical risks weighed on sentiment and policy cues from the annual parliamentary meeting offered few surprises.

The Hang Seng Index ended 435 points, or 1.72 percent, up at 25,757, paring the benchmark's losses for the week to 3.3 percent.

The China enterprises index was up 176 points, or 2.09 percent, at 8,628 while the tech index snapped a four-day losing streak to end up 151 points, or 3.15 percent, at 4,947 after JD.com signalled it would scale back investment in its food-delivery business.

On the mainland, the benchmark Shanghai Composite Index ended up 15 points, or 0.38 percent, at 4,124.

The Shenzhen Component Index was 83 points, or 0.59 percent, higher at 14,172 while the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 12 points, or 0.38 percent, to 3,229.

China's ⁠blue-chip CSI300 Index closed up 0.3 percent, leaving it down 1.1 percent for the week.

Worries that a wider Middle East conflict could trigger an energy shock, lift inflation and delay rate ⁠cuts pressured Asian markets this week.

Consumer staples shares ⁠led gains onshore, up ⁠2.5 percent.

Oil and gas stocks fell 1.9 percent, while non-ferrous shares were down 2.1 percent.

The National People's Congress maintained at its ongoing "Two Sessions" meetings a tech-first policy stance while adopting a pragmatic fiscal approach, indicating little upside surprise for the index, Morgan Stanley analysts said in a note.

The analysts added that they remained more positive on onshore A-shares than offshore markets and favour stock-picking over index exposure.

They cited stronger policy ⁠support for A-share-focused sectors, softer southbound momentum, and the prospect of state-linked funds buying if volatility rises.

Onshore investors sold a record HK$27.7 billion worth of shares via the Stock Connect scheme on Thursday.

Japanese shares marked their steepest weekly drop in almost a year on Friday, as the Middle East war heavily disrupted traffic through the Strait of Hormuz, choking oil supply and pushing investors out ⁠of risk and into cash.

The Nikkei 225 edged higher 0.6 percent to close at 55,620, after falling up to 1.4 percent earlier in the session.

The benchmark wrapped up the week 5.5 percent lower, its worst weekly decline by percentage since the week ended April 4, 2025, when US President Donald Trump announced his sweeping tariffs.

In Seoul, the Kospi was little changed. (Reuters/Xinhua)


Edited by Tony Sabine