Hong Kong and mainland stocks ended lower on Thursday as escalating Middle East tensions rekindled concerns over higher oil prices and inflationary pressures.

The benchmark Hang Seng Index dropped 320 points, or 1.3 percent, to 24,954 on turnover of HK$198.87 billion.

The tech index dropped 90 points, or two percent, to 4,330 while the China enterprises index fell 94 points, or 1.1 percent, to 8,274.

Up north, the Shanghai Composite Index ended down 17 points, or 0.43 percent, at 3,934 on turnover of 779.67 billion yuan.

The Shenzhen Component Index closed 105 points, or 0.77 percent, lower at 13,617 on turnover of 867.47 billion yuan while the ChiNext Index lost 16 points, or 0.49 percent, to close at 3,338 on turnover of 380.05 billion yuan.

Asian stocks ⁠slid as the biggest wave of attacks on shipping in the war with Iran kept oil ⁠prices above US$100 a barrel.

Meanwhile, traders and analysts are anxiously awaiting US inflation data due this week, seeking fresh clues on the Federal Reserve's policy outlook and its potential impact on global financial ⁠markets.

"September FOMC decision remains a close call as investors await US CPI release," analysts at OCBC Bank said of the Federal Open Market Committee in a note.

The yield premium of the 10-year US Treasury over its Chinese counterpart widened to the highest level on record, driven by a surge in US yields amid worries that rising oil prices could fuel inflation.

US companies in China have grown more optimistic about their business prospects after confidence hit a record low last year amid political tensions, intense competition and slowing economic growth, a survey showed on Thursday.

Separately, Chinese artificial intelligence startup DeepSeek has tapped Citic Securities to prepare for an initial public offering on Shanghai's tech-focused Star Market, sources said.

In Tokyo, the Nikkei share average recovered from early losses to end 128 points, or 0.2 percent, at 65,270 as investors waited for a slate of key market events in coming days, from closely watched US inflation data to a Bank of Japan policy decision.

The broader Topix climbed almost eight points, or 0.2 percent, to 4,054.

In Seoul, the Kospi closed down 16 points, or 0.24 percent, at 7,034 after falling up to 2.2 percent earlier before being helped by a strong showing from chip stocks. (Reuters/Xinhua)




Edited by Tony Sabine