Chinese stock markets ended lower on Friday, with the Shanghai Composite dropping 1.24% to 3,957 and the Shenzhen Component slipping 0.25% to 13,866. Both indexes also saw notable losses over the week as investors remained cautious about the potential economic and inflation impact of the Iran conflict and rising energy prices.
There was some relief in sentiment after oil prices eased, following comments from US President Donald Trump ruling out ground troop involvement in Iran, and Israeli Prime Minister Benjamin Netanyahu indicating no further strikes on Iranian energy facilities.
China is seen as relatively better prepared than other Asian economies to handle higher oil prices, thanks to its large energy reserves and increasing reliance on renewable energy.
Among individual stocks, Huagong Tech, Zijin Mining, and East Money Information recorded declines. On the positive side, solar-related companies gained support after reports that Tesla may source solar equipment from Chinese firms.