Shanghai stocks close at 10-year high as Iran conflict boosts energy and gold shares; HK drops

Mar 2, 2026, 15:50 GMT+7
Reuters - Shanghai stocks closed at a 10-year high on Monday, bucking regional weakness in the wake of the Iran conflict as investors snapped up energy, gold and defence shares.
Mainland sentiment was supported by expectations that Beijing may step in to steady markets ahead of a parliamentary meeting later this week.
However, Hong Kong's Hang Seng, which is more susceptible to global market volatility, fell more than 2% to a two-month low.
The U.S. and Israel launched major strikes on Iran over the weekend, killing Supreme Leader Ayatollah Ali Khamenei, escalating geopolitical tensions and deepening global economic uncertainty.
The Shanghai Composite Indexended the session up 0.5% at 4,182.6 points, the highest close since June, 2015. China's blue-chip CSI300 Indexgained 0.4%.
Kevin Liu, a strategist at CICC Research, said the impact of any geopolitical conflict would likely be fleeting.
"It does not alter the original trend determined by macro fundamentals," Liu said.
Investors piled into Chinese energy companiesafter oil prices surged, sending the shares of oil giants CNOOC, PetroChinaand China Petroleum & Chemical Corpsharply higher.
Energy stocks in Hong Kong also shot up.
A dramatic increase in oil prices would curb overall risk appetite as the prospect of higher inflation makes it more difficult for the U.S. Federal Reserve to cut rates, said Jeff Mei, chief operating officer at crypto exchange BTSE .
He added, "Investors flock towards safe-haven assets such as gold in times of conflict."
An index tracking Chinese gold stocks jumped 7%, while defence stocksalso rose sharply.
Shipping stocks rose, with shares in Nanjing Tanker, COSCO Shippingand China Merchants Energy Shippingall surging by their 10% daily limit.
But shares in Chinese air carriers and tourism firms slumped due to conflict-related travel disruptions.
Shares of Air Chinafell more than 3% in both Shanghai and Hong Kong. Mainland-listed shares of China Southern Airlinesand China Eastern Airlinesalso tumbled.
In Hong Kong, energy was the only major sector in positive territory. Tech (.HSSCSS), healthcare (.HSHCI) and tourism were among the biggest decliners.
Crypto ETFs listed in Hong Kong,fell.
"If the conflict intensifies, we can expect gold to remain strong while bitcoin becomes more vulnerable," said Jeff Ko, chief analyst at crypto exchange CoinEx.
While Beijing frequently stepped in to support onshore markets, Hong Kong, by contrast, "often acts as a shock absorber," he added.

Sumber : Reuters