Hong Kong and mainland stocks fell sharply on Monday as the escalating conflict in the ⁠Middle East sent oil prices soaring, threatening global growth and hitting risk appetite in markets across Asia.

The benchmark Hang Seng Index opened 681 points, or 2.65 percent, down at 25,075, a six-month low.

The China enterprises index dropped 189 points, or 2.2 percent, to 8,438 while the tech index slid 187 points, or 3.8 percent, to 4,760.

On the mainland, the benchmark Shanghai Composite Index opened down 0.62 percent at 4,098.

The Shenzhen Component Index was 1.78 percent lower at 13,920 while the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, was down 2.37 percent at 3,152.

China's ⁠blue-chip CSI300 Index fell ⁠two percent to the lowest ⁠level this year.

Meanwhile, the yuan hit the weakest level in a month against the rebounding dollar.

Oil prices surged ⁠on Monday as the expanding US-Israeli war with Iran led some major Middle Eastern oil producers to cut supplies and on fears of prolonged disruption to shipping through the Strait of ⁠Hormuz chokepoint.

Asian equities tumbled on prospects that the Middle East war could leave consumers and businesses worldwide facing weeks or months of higher fuel prices, threatening an already ⁠fragile global economy.

The spike in crude prices was sobering news for Japan as a major importer of oil and gas, sending the Nikkei down, on top of a 5.5 percent drop last week.

The Nikkei lost 4,179 points, or 7.51 percent, to 51,441 as of late morning while the broader Topix slipped 212 points, or 5.7 percent, to 3,504.

In Seoul, the high-flying market fell closer to earth with a drop of 7.3 percent, having already shed more than 10 percent last week. The Kospi was down 454 points, or 8.13 percent, at 5,130 by late morning. (Reuters & Xinhua)


Edited by Aaron Tam