Hong Kong stocks fell for a second straight session on Thursday as investors remained cautious while awaiting a breakthrough in the Middle East.
The Hang Seng Index declined 264.60 points, or 1%, to end at 25,386.52, while the Hang Seng China Enterprises Index decreased by 129.81 points, or 1.5%, to close at 8,475.32.
Pakistan intensified diplomatic efforts to bring Iran and the U.S. back to the negotiating table as the two sides remain at odds, Reuters reported.
With no visible progress toward ending the conflict in the Middle East, oil prices were again trending higher, raising concerns about inflation and the broader impact on the global economy.
Meanwhile, Russian President Vladimir Putin left China without securing any major breakthrough on the long-delayed Russia-to-China natural gas pipeline project.
Despite years of negotiations, the proposed Power of Siberia 2 pipeline remains stalled over unresolved issues, including gas pricing terms and flexibility on supply volumes.
In corporate news, shares of Deepexi Technology (HKG:1384) slumped 17% at market close after disclosing that it is seeking to raise HK$395 million via private placement.
The enterprise AI company is offering 7.9 million new H shares at HK$50.58 each to raise funds to expand its business overseas.