China and Hong Kong stocks closed lower on Thursday, as markets reassessed the prospects for a short-term ceasefire following renewed violence in the Middle East.
** China's blue-chip CSI300 Index ended 0.6 percent lower, while the Shanghai Composite Index lost 0.7 percent. The Hong Kong benchmark Hang Seng was down 0.5 percent.
** Israel pounded Lebanon with its heaviest strikes yet on Wednesday, killing hundreds of people and drawing a threat of retaliation from Iran, which suggested it would be "unreasonable" to proceed with talks to forge a permanent peace deal with the United States.
** "The two-week ceasefire is barely a day old, and it seems there are already cracks forming, even as financial markets remained relatively buoyant," said analysts at MUFG.
** Consumer staple and financial shares led declines onshore, falling 1.4 percent each.
** Energy shares rebounded onshore and offshore, up 0.1 percent and 0.8 percent, respectively, as oil prices rose.
** Tech giants listed in Hong Kong reversed gains to fall 2.1 percent.
** Analysts at BOC International saw a rebound and an allocation opportunity in China's non-ferrous metals sector.
** Frequent geopolitical flare-ups have fragmented supply, while rigid resource supply and shifts in the global monetary landscape - seen as weakening the dollar-centric credit system - could jointly catalyse both the industry outlook and the asset's financial appeal, the analysts said.
** Investors are awaiting China's first-quarter inflation print due on Friday to gauge domestic demand.
Reuters
