Hong Kong stocks kicked off trading on a weaker note on Friday, tracking volatile action in the US markets, even as US and Iranian negotiators continued to seek a phased pathway to end the war in the Middle East.
The Hang Seng Index shed 1%, or nearly 238 points, to 24,523.50. The Hang Seng China Enterprises Index lost 1.1%, or 94 points, to 8,172.50.
Volatility on Wall Street on Thursday was influenced by investor uncertainty about the US-Iran war, even as diplomatic talks progressed between the two, including the removal of economic sanctions on Tehran and the reopening of the Hormuz Strait. That sent Treasury yields and oil prices higher, stoking fresh worries about a Federal Reserve rate hike.
Meanwhile, investors will closely monitor high-level talks between the US and China on the final day of Xi Jinping's three-day state visit to Washington. President Donald Trump and his Chinese counterpart have so far agreed to maintain a relationship even if they disagree on several policies, largely related to trade, China's ties with Tehran, and US support for Taiwan.