Mainland and Hong Kong stocks tumbled on Thursday, joining a broader decline across Asia, as risk appetite was further dampened after a major escalation in the ⁠US-Israeli attacks on Iran.

The benchmark Hang Seng Index ended down 524 points, or 2.02 percent, at 25,500.

The China enterprises index was down 139 points, or 1.58 percent, at 8,695 while the tech index was 112 points, or 2.19 percent, down at 4,996.

Internet giant Tencent tumbled nearly seven percent, the worst single-day decline since April, after the firm announced a higher AI investment ⁠in 2026 after chip curbs hit capex plans.

Across the border, the benchmark Shanghai Composite Index ended down 56 points, or 1.39 percent, at 4,006.

The Shenzhen Component Index closed 286 points, or 2.02 percent, lower at 13,901 while the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 37 points, or 1.11 percent, to close at 3,309.

Risk sentiment took a beating globally after Tehran fired missiles at oil and gas targets throughout the Gulf, including key LNG sites ⁠in Qatar, in retaliation for Israeli attacks on its Pars gas field, sending oil prices sharply higher.

Around ⁠the region, MSCI's Asia ⁠ex-Japan stock index was weaker by 2.8 percent.

"Market volatility will stay elevated for now, and there's little visibility about ⁠how the conflicts will unfold. Both have dampened investors' willingness to deploy capital and kept them on the sidelines," said Cusson Leung, chief investment officer at KGI.

The firm, however, continues to favour ⁠Chinese equities, as their lower correlation with global markets positions them as an attractive diversification opportunity, he noted.

Declines were across the board, with the CSI SWS Non-Ferrous Metal Index and the CSI SH-SZ-HK Gold Industry Index losing more than six percent to rank among the biggest losers following the gold price plunge.

The CSI 300 Energy Index jumped 4.2 percent following ⁠the surge in oil prices.

In Tokyo, Japanese stocks and bonds fell on Thursday and the yen remained fragile, with the blue-chip Nikkei plunging 1,866 points, or 3.38 percent, to close at 53,372 and the broader Topix sliding 108 points, or 2.91 percent, to 3,609.

In Seoul, the benchmark Kospi closed down 161 points, or 2.73 percent, at 5,763 after hitting its highest level since February 27 on Wednesday. (Reuters/Xinhua)


Edited by Tony Sabine