Asia
Hong Kong Stocks Slump As Middle East Fighting Escalates
Hong Kong equities fell Tuesday as bearish sentiment prevailed amid escalating tensions in the Middle East.The Hang Seng Index fell by around 197.27 points, or roughly 0.8%, to end at 25,898.61, while the Hang Seng China Enterprises Index decreased by 43.90 points, or around 0.5%, to close at 8,730.49.Fighting in the Middle East resumed as the U.S. and Iran vied for control of the critical Strait of Hormuz, after U.S. President Donald Trump said Washington would help ships stranded in the waterway, a key route that carried about one-fifth of global oil and LNG trade before the war.Iran had previously warned it would view any such action as a violation of a previously agreed ceasefire.The Middle East conflict will hit many Asia-Pacific corporate sectors through oil price hikes, shipping and supply chain disruptions, dampened demand, and delayed cyclical rebounds, Fitch Ratings said in a recent release.In corporate news, two firms filed to go public in Hong Kong.Metis TechBio (HKG:7666) is seeking to raise about HK$2.11 billion via the sale of 201.2 million shares at HK$10.50 per share. The Chinese AI-driven nanotechnology company will use funds to further research and development of AI infrastructure.Meanwhile, Impact Therapeutics (HKG:7630) launched its IPO to raise HK$913 million via the sale of 42 million shares at an indicative maximum price of HK$21.75 per share. The China-based biotechnology firm will use proceeds mainly to fund clinical development.Elsewhere, Star Sports Medicine (HKG:1609) had a stellar debut in Hong Kong. The medical device company's shares closed at HK$215 per share on their first day of trading, 118% above the offer price of HK$98.50.
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