Hong Kong Stocks Tumble as U.S.-Iran Tensions Escalate; Nio Advances on SUV Launch

MT Newswires Live16:38

Hong Kong stocks slumped Thursday as renewed U.S. military action against Iran and reports of fresh missile attacks in Kuwait rattled sentiment and undermined hopes for a peace deal.

The Hang Seng Index fell 1.3%, or 322.07 points, to close at 25,006.16, while the Hang Seng China Enterprises Index dropped 1.2%, or 98.61 points, to finish at 8,364.41.

The U.S. military launched fresh strikes targeting an Iranian drone operation that Washington said threatened U.S. forces and commercial shipping in the Strait of Hormuz, Reuters reported, citing a U.S. official.

The strikes came hours after President Donald Trump dismissed Iranian reports suggesting a deal had been reached to restore traffic through the strategic waterway.

Meanwhile, oil prices climbed more than 2% after Iran's Revolutionary Guards said they had targeted a U.S. airbase in response to an earlier U.S. attack on the port city of Bandar Abbas.

In corporate news, Nio (HKG:9866, SGX:NIO) closed over 6% higher after unveiling its flagship ES9 electric SUV in China.

CIG Shanghai's (HKG:6166, SHA:603083) Hong Kong shares advanced 11% after unveiling plans to raise about HK$1.98 billion through a stock offering.

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