Middle East Tensions Weigh on Chinese and Hong Kong Stocks

Stock markets across Mainland China and Hong Kong experienced a decline on Friday, aligning with regional market losses, as investors flocked towards safe-haven assets following recent Israeli airstrikes on Iran, intensifying Middle East tensions.

Israel's strikes targeted Iranian nuclear sites and military facilities, marking the beginning of a sustained operation aimed at thwarting Tehran's nuclear ambitions. By the trading day's end, the Shanghai Composite index had fallen by 0.75% to 3,377.00, while the CSI300 index saw a decline of 0.72% to 3,864.18 points.

The selloff was also felt in Shenzhen and Hong Kong markets, with the Shenzhen index dropping 1.32% and the Hang Seng index decreasing by 0.59%. Despite the downturn in stock indices, shares of gold miners and defense companies showed gains, while oil and gas shares outperformed. The yuan faced downward pressure, weakening 0.14% against the US dollar amid stronger demand for safe assets.

(With inputs from agencies.)