Hang Seng Weakens Amid Risk-Off Sentiment Due to Middle East Conflict
Hong Kong stocks closed lower on Monday (March 23) amid growing risk-off sentiment after conflicts in the Middle East heightened concerns about energy supplies. The benchmark Hang Seng Index fell 3.5% to end at 24,382.47, reflecting broad pressure in Asian markets heavily reliant on energy from the Gulf region.
According to Jude Lin of WRISE Private Singapore, Asia's heavy reliance on Middle Eastern energy has hit markets hard by the impact of the Iran war. He believes the deliberate targeting of vital energy infrastructure in the Gulf region has spooked investors and pushed the market into a more pronounced risk-off mode, as inflation risks and growth uncertainty mount.
Among Hang Seng constituents, Laopu Gold led the decliners, falling 8.6% ahead of its earnings release. China Hongqiao closed down 8.1%, while AIA fell 7.8%, underscoring the widespread pressure on major stocks in Hong Kong.
Newsmaker's takeaway: As long as the conflict continues to pressure energy flows and fuel oil volatility, Asian markets—including Hong Kong—are likely to remain defensive. Risk-off is likely to persist until there are clear signs of stabilization in energy supplies and a de-escalation in the conflict.
Source: Newsmaker.id
