Mainland stocks ended lower on Friday, logging their biggest weekly drop since November, as the Middle East conflict continued to weigh on investor sentiment.

In Hong Kong, the benchmark Hang Seng Index ended down 223 points, or 0.88 percent, at 25,277.

The China enterprises index was down 121 points, or 1.5 percent, at 8,574 while the tech index was 123 points, or 2.48 percent, down at 4,872.

Alibaba shares in Hong Kong plunged to the lowest level since August, after its third-quarter results missed analysts' expectations, as ⁠heavy spending on one-hour delivery and promotions during peak shopping periods failed to spur demand.

Across the border, the benchmark Shanghai Composite Index ended down 49 points, or 1.24 percent, at 3,957, the lowest closing level since December 24.

The Shenzhen Component Index closed 35 points, or 0.25 percent, lower at 13,866 while the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, was up 43 points, or 1.3 percent, to close at 3,352.

Non-ferrous metal shares led losses, dropping 1.1 percent on Friday and 12.2 percent for the week.

They were pressured by a drop in gold prices following a firm greenback and the US Federal Reserve's hawkish tone, dampening hopes for near-term interest rate cuts.

China's central bank said it would fully leverage its financial tools to "resolutely safeguard the stable operations of stock, bond, foreign exchange and other financial markets," according to a statement ⁠on Thursday.

Top central banks said on Thursday they stood ready to tackle any inflation surge, as the Iran war put the Middle East's vital energy infrastructure in the line of fire.

Earlier in the session, ⁠China left its benchmark lending loan prime rates for March unchanged for the 10th consecutive month.

"With the Fed constrained in its easing cycle and the USD remaining firm, the People's Bank of China faces a narrower policy corridor, balancing domestic growth support with FX stability," said Byron Lam, an economist at DBS.

"Rising imported energy costs could further complicate easing, as policymakers weigh growth support against imported inflation ⁠risks."

Meanwhile, photovoltaic shares outperformed, jumping 2.9 percent after Tesla was reported to be seeking to buy US$2.9 billion worth of equipment from Chinese suppliers.

In Seoul, South Korean shares logged their first weekly gain in three, as bargain hunting in technology stocks outweighed concerns over the Iran conflict.

The benchmark Kospi closed up almost 18 points, or 0.31 percent, at 5,781.

The index has climbed 5.5 percent for the week and 37 percent so far this year. (Reuters/Xinhua)


Edited by Tony Sabine