Mainland and Hong Kong stocks closed down on Thursday as investor risk appetite waned amid few signs that the US-Israel war with Iran would end soon.

⁠The benchmark Hang Seng Index ended down 182 points, or 0.7 percent, at 25,716.

The China enterprises index was almost five points, or 0.06 percent, down at 8,699 while the tech index was down 27 points, or 0.54 percent, at 5,027

Shares of Guotai Junan International and Citic Securities fell 4.2 percent and 1.7 percent, respectively, over media reports that ⁠Hong Kong authorities had raided the two brokerages this week.

Up north, the benchmark Shanghai Composite Index closed down just over four points, or 0.1 percent, at 4,129.

The Shenzhen Component Index closed 90 points, or 0.63 percent lower, at 14,374 while the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 32 points, or 0.96 percent, to close at 3,317.

The combined turnover for the main Shanghai and Shenzhen indexes was 2.44 trillion yuan, down from 2.51 trillion yuan on Wednesday.

The green electricity, chemical engineering and coal sectors led gains while shares in the gas turbine sector suffered major losses.

China's blue-chip CSI300 Index ended 0.4 percent lower.

Energy shares outperformed, with onshore and offshore energy gauges up 2.5 percent and 2.3 percent, respectively, and the coal index gaining 4.7 percent after Brent crude jumped past US$100 a barrel.

In Tokyo, the Nikkei ⁠fell 572 points, or 1.04 percent, to 54,452 after falling up to 2.2 percent earlier in the session. The broader Topix slipped 49 points, or 1.32 percent, to 3,649.

In Seoul, the Kospi closed down 26 points, or 0.48 percent, at 5,583 after swinging between a 0.34 percent gain and a 1.47 percent loss during the session.

Iran set ablaze two ⁠tankers in Iraqi waters as it stepped up attacks ⁠on oil and transport ⁠facilities across the Middle East, warning the world should be ready for oil at US$200 a ⁠barrel in defiance of US President ‌Donald Trump's claim that Washington had already won the war.

UBS analysts said in ‌a client note that investors generally see a dramatic oil spike, such ⁠as US$200 per barrel, as unlikely without a major disruption, such as military activity causing a prolonged blockade of shipping routes.

They added that investors had ‌been taking profits on war-linked metals trades, including copper and aluminium, while selectively adding to undervalued stocks on the view that most macro risks are priced in and any easing ⁠in geopolitical tensions ‌could support a gradual recovery in ‌valuations. (Reuters & Xinhua)



Edited by Thomas McAlinden