“The market is anxious that sustained high oil prices will deliver a significant shock to both the future economy and investment markets,” said Kenny Ng Lai-yin, a strategist at Everbright Securities International.
Hong Kong stocks dropped on Monday as escalating tensions in the Middle East sent oil prices to recent highs.
The escalation pushed up oil prices, with Brent crude jumping as much as 3.7 per cent to US$116.80 a barrel, its highest in more than a week, while West Texas Intermediate rose to US$101 a barrel.
The Hang Seng Index fell 0.8 per cent to close at 24,750.79. The Hang Seng Tech Index dropped 1.8 per cent. On the mainland, the CSI 300 Index retreated 0.2 per cent and the Shanghai Composite Index gained 0.2 per cent.
Market Movements and Impacts:
Hang Seng Index: The index closed at 24,750.79, with tech shares hit hardest.
Oil Prices Surge: Brent crude rose 3.7% to US$116.80, and WTI hit US$101, raising inflation fears.
Regional Decline: Japan's Nikkei 225 fell 2.8% and South Korea's Kospi slumped 3%.
Geopolitical Factors: The conflict entered its fifth week with Houthi rebels launching attacks toward Israel and US forces increasing their presence in the region.
Sector Performance: While energy and resource-related sectors gained, technology, healthcare, and consumer stocks in Hong Kong were among the heaviest fallers
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