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As on : 12-Mar-2026

Market Commentary - Foreign Markets
12-Mar-2026 16:43

China equities fall as geopolitical tensions and higher oil prices weigh on sentiment

Chinese equities declined on Thursday as investors turned cautious amid rising geopolitical tensions and higher energy prices, although some strength remained in select technology and energy-related stocks.

Mainland markets moved lower during the session. The CSI 300, which tracks the largest companies listed in Shanghai and Shenzhen, fell about 1% by midday, while the Shanghai Composite Index slipped roughly 0.6%. In Hong Kong, the Hang Seng Index dropped around 1.2%, reflecting a broader risk-off mood across Asian markets.

The decline followed weaker global sentiment as investors reduced exposure to risk assets amid escalating tensions in the Middle East and a sharp rise in oil prices. Brent crude briefly climbed above $100 per barrel, raising concerns that higher energy costs could add to inflation pressures and weigh on global economic growth.

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