(Updates to market close)
SHANGHAI, March 12 (Reuters) - China and Hong Kong stocks closed down on Thursday as investor risk appetite waned amid few signs that the U.S.-Israel war with Iran will end soon. China’s blue-chip CSI300 Index (.CSI300) ended 0.4% lower, while the Shanghai Composite Index (.SSEC) lost 0.1%. Hong Kong benchmark Hang Seng (.HSI) was down 0.7%. Energy shares outperformed, with onshore and offshore energy gauges up 2.5% and 2.3%, respectively, and the Coal Index (.CSI000820) gaining 4.7% after Brent crude jumped past $100 a barrel. Iran set ablaze two tankers in Iraqi waters as it stepped up attacks on oil and transport facilities across the Middle East, warning the world should be ready for oil at $200 a barrel in defiance of President Donald Trump’s claim that the U.S. had already won the war. UBS analysts said in a client note that investors generally see a dramatic oil spike, such as $200 per barrel, as unlikely without a major disruption, such as military activity causing a prolonged blockade of shipping routes.
They added that investors have been taking profits on war-linked metals trades, including copper and aluminium, while selectively adding to undervalued stocks on the view that most macro risks are priced in and any easing in geopolitical tensions could support a gradual recovery in valuations. Onshore non-ferrous metal (.CSISNMIM) shares fell 0.6%, while artificial intelligence stocks (.CSI930713) slipped 0.9%. The CSI Rare Earth Index (.CSI930598) fell 0.4%. Hong Kong shares of Guotai Junan International (1788.HK) and Citic Securities (6030.HK) fell 4.2% and 1.7%, respectively, after media reported Hong Kong authorities had raided the two brokerages this week.

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Reuters

Conglomerates Index

Hang Seng Composite Index

Hang Seng Index

SSE Index

Yinhua CSI 300 Index Fund(LOF)-A

E Fund CNI Value 100 ETF

GF Fund CSI HK Connect Financials(ex Banks) Thematic ETF

China Universal CSI 300 Index Initiating Fund(LOF)-C

E Fund CSI 300 Financials (ex Banks) ETF

ChinaAMC Hang Seng ETF

Hwabao WP CSI All Share Investment Banking & Brokerage ETF

Guotai CSI All Share Investment Banking & Brokerage ETF

TRACKER FUND

Fortune SG SSE 180 Value ETF

China Southern Hang Seng ETF

Yinhua CSI All Share Investment Banking & Brokerage ETF

Huatai-PB CSI 300 ETF

Zheshang CSI 300 Enhanced Index Fund(LOF)-A

Harvest SZSE SME-ChiNext Composite 300 ETF

China, HK stocks close down as escalating Middle East war saps sentiment