Stocks Plunge Amid Middle East Tensions
Stocks in China and Hong Kong plummeted on Thursday due to escalating Middle East tensions impacting investor sentiment. Despite a recent Sino-U.S. trade truce, fears persisted of a structural economic decline. Major indices dropped significantly, with the tech and healthcare sectors hit hardest, showcasing investors' concern over global instability.
Stocks across China and Hong Kong faced a steep decline on Thursday as increasing tensions in the Middle East unsettled investor sentiment, leading to widespread selloffs in multiple sectors. The geopolitical situation remains volatile with Iran and Israel exchanging air strikes, and the possibility of U.S. involvement looming large.
The heavily anticipated Lujiazui Forum in Shanghai did little to assuage market concerns, as it failed to introduce significant new measures for market support. As of midday trading, China's CSI300 index had dropped 0.8%, while the Shanghai Composite slid 0.9% to 3,359.
The financial, real estate, and defense sectors all showed weak performance, with Hong Kong's Hang Seng Index suffering its steepest single-day drop since April, falling by 2%. Technology and healthcare industries were among the hardest hit, showing investor worries about the overall direction of the global economy despite recent positive developments in Sino-U.S. trade relations.
(With inputs from agencies.)
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