Published on 07/24/2026 at 12:49 am EDT
(Reuters) - China and Hong Kong stocks retreated on Friday on higher oil prices, fuelling inflation fears and dampening investor sentiment.
** China's blue-chip CSI300 Index and the Shanghai Composite Index fell 1.2% by lunch break.
** Hong Kong benchmark Hang Seng dropped 1.7%, while Hang Seng Tech lost 1.7%.
** Brent crude jumped to above $100 a barrel after U.S. President Donald Trump promised "major military punishment" for Iran and its Houthi allies on Thursday.
** Geopolitical uncertainties and higher oil prices have weighed on regional market performance.
** The upcoming listing of Chinese memory giant CXMT has also weighed on market sentiment, as investors fear such mega IPOs will sap market liquidity.
** Semiconductor and aviation stocks gained by midday while most sectors dropped.
** "Investors remained cautious ahead of the July Politburo meeting and the anticipated IPO of CXMT , despite continued market stabilisation efforts from the 'national team' in recent weeks," Morgan Stanley analysts said in a note.
** China's securities regulator pledged on Thursday to prevent risks in key areas and strengthen policy reserves to respond to global market fluctuations and cross-border risk transmission, according to a meeting readout.
** Analysts said the market is closely looking for any change in policy direction or stimulus measures at the Politburo meeting next week.
** The weak second-quarter data prints call for support measures, DBS analysts said in a note.
** The smaller Shenzhen index was down 1.96%, the start-up board ChiNext Composite index was weaker by 1.78% and Shanghai's tech-focused

STAR

50 index was up 0.27%.
(Reporting by Summer Zhen; Editing by Harikrishnan Nair)

Sumber : Reuters