China shares steady as energy and defence shares surge, offsetting airline losses; HK drops

China's benchmark equity indexes were not significantly changed Monday in the aftermath of a conflict with Iran. Increases in gold, energy and defence stocks offset declines in airline and tourism shares.

The expectation that Beijing would step in and stabilize markets before a parliamentary session later this week boosted sentiment on the mainland.

Hong Kong's Hang Seng Index fell over 2%.

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China's CSI300 Index, the blue-chip index of China, and the Shanghai Composite Index oscillated between small gains and losses in early trading.

After oil prices spiked, investors flooded into Chinese energy giants CNOOC, PetroChina, and China Petroleum & Chemical Corp, sending their shares soaring.

Gold stocks and defence stocks both rose in value as investors sought a safe haven.

Shipping stocks are on the rise, with shares of Nanjing Tanker Corp,?COSCO Shipping, and China Merchants Energy Shipping all rising.

The conflict has caused travel disruptions, which have led to a decline in shares of Chinese air carriers.

Air China shares fell by more than 4% in Shanghai and Hong Kong.

Shares of China Southern Airlines,?China Eastern Airlines, and other mainland-listed airlines also fell.

Energy was the only major sector that showed positive growth in Hong Kong.

The biggest decliners were in the tech, healthcare, and tourism sectors. (Reporting and editing by Kevin Buckland; Shanghai Newsroom)

(source: Reuters)