FX.co ★ China Stocks Struggle as Iran War Weighs

The Shanghai Composite was little changed around 4,129 on Friday and was on track to end the week broadly flat, as mainland equities struggled for direction amid uncertainty stemming from the war involving Iran, which weighed on risk appetite. Tough rhetoric from leaders in Tehran and Washington signaled that the conflict remains far from de-escalation after nearly two weeks of hostilities. Meanwhile, oil prices jumped after Iran’s new supreme leader, Mojtaba Khamenei, vowed to keep the Strait of Hormuz effectively closed while Tehran stepped up attacks on regional oil and transport infrastructure, stoking inflation worries. Even so, Chinese equities proved relatively resilient, supported by Beijing’s long-running efforts to insulate the economy from oil supply shocks through extensive investment in renewable energy and strategic petroleum reserves. Clean energy stocks outperformed on Friday, led by Sungrow Power (up 3%), Goldwind Science (up 2.3%), and Contemporary Amperex (up 1.1%).