China and Hong Kong Indexes Faced Selling Pressure After Tensions Flared Up In the Middle East

Li Chen
02 Mar, 2026
Hong Kong

Financial markets in China and Asia turned volatile after the U.S. and Israel attacked targets in Iran and killed several political leaders.

The Hang Seng Index decreased 2% and dropped as much as 2.8% in early trading as investors reacted for the first time to the attacks on Iran. 

Broader market averages in mainland China rebounded to close higher amid a recovering sentiment, despite Iran closing the Strait of Hormuz for oil cargo transit. 

Brent crude jumped as much as 14% to $82.35 before settling 7% at $79.46 in Shanghai trading as traders digested the latest developments in the Middle East. 

The worries of prolonged global energy supply disruptions through the Strait of Hormuz, through which one fifth of the global crude oil and gas supply transits, stoked crude oil prices higher.

Gold gained 2.3% to $5,402.52 an ounce as investors sought safe-haven assets amid rising geopolitical tensions. 

In a retaliatory strike, Iran attacked U.S. military bases in Qatar, UAE, Jordan, Saudi Arabia, Kuwait, Bahrain, and Iraq.

The global risk-aversion sentiment was further enhanced amid ongoing worries about the potential artificial intelligence-driven disruption spreading to wider segments of the global economy. 

 

China Indexes and Stocks 

The Hang Seng Index decreased 2% to 26,092.84, and the CSI 300 increased 0.4% to 4,727.09. 

Shipping companies traded higher in Hong Kong after freight rates jumped, reflecting elevated tensions in the Middle East.

COSCO Shipping Holdings advanced 1.7% to HK $15.44; China Merchants Port Holdings decreased 1.8% to HK $17.17; and Orient Overseas International advanced 2.5% to HK $153.50.