Hong Kong stocks fell to a six-month low on Wednesday, as surging oil prices fuelled bets that rising energy costs would stoke inflation and increase the risk of a global slowdown.
The Hang Seng Index fell 2.8%, while the Hang Seng Tech Index decreased 2%.
In terms of star stocks, Zijin Gold Intl down 5%; Alibaba, XPeng, Nio, JD.com down 4%; Pop Mart, BYD down 3%; Meituan, Tencent down 2%.
With no immediate sign of an end to the US-Iran war, investors have started to factor in the consequences of a prolonged conflict in the Middle East by trimming their exposure to risk assets. Higher oil prices will weigh on stocks and other risk assets as they would fan inflation and force the US Federal Reserve to delay interest-rate cuts.
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