Geopolitical Tensions Roil Asian Markets Amid Energy Surge

China and Hong Kong stocks experienced a downturn on Thursday as rising geopolitical tensions in the Middle East curbed investor risk-taking. The CSI300 Index dropped by 1% while the Shanghai Composite Index lost 0.6%, and the Hang Seng fell by 1.2% as concerns over the United States-Israel and Iran conflicts lingered.

Despite the broader market losses, energy shares rose sharply. Onshore and offshore energy gauges climbed 2.3% and 2.8%, respectively, following a surge in Brent crude prices past $100 a barrel. Iran's increased attacks on oil and transport facilities, including the burning of two tankers in Iraqi waters, contributed to this spike, causing speculation about a potential rise to $200 a barrel.

In contrast, onshore non-ferrous metal and AI stocks slipped 1.6% and 1.4%, respectively. The CSI Rare Earth Index also saw a 2% decline. Meanwhile, shares of Guotai Junan International and Citic Securities in Hong Kong fell after authorities conducted raids on the brokerages earlier this week, impacting investor confidence further.