Hong Kong stocks closed lower on Tuesday as investors remained cautious over developments in the Middle East while assessing sentiment toward artificial intelligence-related stocks following strong U.S. corporate earnings.
The Hang Seng Index fell 156.48 points, or 0.6%, to close at 25,852.92, while the Hang Seng China Enterprises Index lost 77.89 points, or 0.9%, to 8,574.26.
Investor sentiment turned defensive as U.S. and Iran offered conflicting accounts over diplomatic talks, raising uncertainty over the stability of the Strait of Hormuz. Oil prices also edged higher after attacks on shipping in the strategic waterway, while markets continued to assess whether upbeat earnings from U.S. companies would support AI-related shares in the region.
Among individual stocks, HSBC (HKG:0005) fell 1% despite reporting a rise in second-quarter profit attributable to ordinary shareholders.
Shanghai Pharmaceuticals (SHA:601607, HKG:2607) slipped more than 1% after its unit received regulatory approval in China for an omeprazole and sodium bicarbonate dry suspension used to treat gastrointestinal conditions.