Mainland Chinese stocks were mixed on Tuesday, while Hong Kong shares edged lower as investors reassessed the prospects of an end to the U.S.-Iran conflict and its potential impact on global oil prices, Reuters reported.
At the midday break, the Shanghai Composite was down 0.1%, while the blue-chip CSI300 gained 0.2%. The Shenzhen index rose 0.4%, the ChiNext Composite advanced 1.4%, and Shanghai's technology-focused STAR50 index added 0.2%.
Iran Conflict Keeps Oil Prices Elevated
Investor sentiment remained cautious as uncertainty surrounding the U.S.-Iran conflict continued to weigh on expectations for a resolution. U.S. President Donald Trump on Monday responded to Iran's conditions for a potential peace deal with demands for compensation over people killed in wars, attacks and protests, adding to concerns that negotiations could become more difficult.
Oil prices remained at more than one-week highs on Tuesday as hopes for an agreement between Washington and Tehran faded. Ongoing disruption around the Strait of Hormuz has raised concerns about oil supplies and added to inflationary pressures globally.
Reuters reported that renewed uncertainty over the reopening of the Strait of Hormuz followed attacks on shipping and oil infrastructure in the Middle East, along with Iran's demands and its position on direct negotiations with the United States.
Hong Kong Tech Stocks Under Pressure
In Hong Kong, the Hang Seng Index fell 0.6%, while the city's technology stocks declined 1.3%. The weakness reflected broader caution as investors weighed geopolitical risks alongside the outlook for global interest rates.
In mainland China, non-ferrous metal stocks were among the biggest decliners, with an index tracking the sector falling 1.5% in morning trading.
Unitree IPO Draws Strong Investor Demand
Investor enthusiasm remained evident in China's equity market despite the broader cautious tone. Chinese robotics maker Unitree said on Monday that its $900 million Shanghai initial public offering was more than 8,000 times oversubscribed by retail investors.
The strong demand highlights continued appetite for technology-related stocks and new listings, particularly in areas linked to robotics and advanced manufacturing.
U.S. Inflation Data in Focus
Markets are also awaiting U.S. inflation data later this week for fresh clues on how the Iran conflict could affect price pressures and the Federal Reserve's policy outlook.
Reuters reported that the latest weak U.S. employment data had reduced expectations for further rate increases, making the upcoming inflation figures particularly important for investors assessing the path of monetary policy. A renewed rise in energy prices could complicate the inflation outlook and influence expectations for future Fed decisions.
Overall, Asian markets remained caught between optimism surrounding China's technology sector and heightened caution over geopolitical risks, elevated oil prices and the potential implications for global monetary policy.
