Hong Kong Stocks Retreat as Oil Climbs; Global New Material Slips on Forecast
Hong Kong stocks closed lower Tuesday as rising oil prices and renewed uncertainty over a U.S.-Iran peace deal weighed on sentiment.The Hang Seng Index fell 284.67 points, or 1.1%, to close at 25,652.82, while the Hang Seng China Enterprises Index lost 93.74 points, or 1.1%, to finish at 8,528.10.Oil prices climbed Tuesday as stalled negotiations between the United States and Iran over a peace deal and the reopening of the Strait of Hormuz raised concerns over prolonged supply disruptions.Higher energy prices fueled inflation concerns ahead of Wednesday's U.S. inflation report, which could shape expectations for a September Fed rate hike.Markets currently see the odds of a rate hike next month as roughly even.In corporate news, Global New Material International (HKG:6616) fell over 2% after saying it expects a swing to loss in the first half.Meanwhile, Hutchison Telecommunications Hong Kong (HKG:0215) closed over 3% lower despite posting an 83% increase in first-half profit.
