China's equity benchmarks remained stable as energy, defence, and gold stocks surged, offsetting declines in airline and tourism shares due to the Iran conflict. Investor focus switched to safe-haven assets amidst geopolitical tensions. Mainland sentiment was buoyed by expected government interventions, while Hong Kong markets showed vulnerability.
Market Tensions: Energy and Gold Shine Amid Iran Conflict
China's equity benchmarks exhibited minimal movement on Monday, amid escalating geopolitical tensions following the Iran conflict. Surges in energy, defence, and gold stocks helped balance the declines in shares of airlines and tourism sectors.
Anticipation of Beijing's intervention to stabilize markets ahead of an upcoming parliamentary meeting bolstered mainland investor confidence. However, the Hong Kong Hang Seng Index, affected more by global market fluctuations, declined by approximately 2%.
After the U.S. and Israel launched strikes on Iran, killing Supreme Leader Ayatollah Ali Khamenei, investors shifted towards energy and safe-haven assets. Increased oil prices spurred sharp rises in Chinese energy companies' shares, while gold stocks also advanced significantly. Airline and tourism stocks, conversely, suffered due to conflict-induced travel disruptions.
