Hong Kong stocks fall with Asia as Iran conflict drives oil prices higher
Most Asian markets retreat as surging oil prices fuel concerns over the economic fallout, while aluminium producers rally on supply fears
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.
Markets across Asia declined. Japan’s Nikkei 225 fell 2.8 per cent and South Korea’s Kospi slumped 3 per cent. In Australia, the S&P/ASX 200 lost 0.7 per cent.
Asia faces the greatest exposure among energy importers. In 2024, nearly 80 to 85 per cent of the oil and liquefied natural gas passing through the Strait of Hormuz flowed to Asian markets, primarily China, India, Japan and South Korea, according to Lazard Geopolitical Advisory.