Chinese equities dropped as investors were cautious over the escalating Middle East conflict, while oil stocks soared on the prospect of crude stockpiles weathering the crisis.
The Shanghai Composite Index sharply fell 3.1%, or 443.40 points, to close Tuesday's trade at 14,022.39. The Shenzhen Component Index lost 1.4%, or 59.91 points, to 4,122.68.
Sentiment weakened as U.S. and Israeli forces continue to attack Iran, while Tehran retaliates by shutting down the Strait of Hormuz, affecting global oil reserves.
However, major Chinese oil giants rallied as analysts and traders believe that Beijing stockpiled enough crude supply, which can last during the airstrikes, unless the conflict is prolonged. The Shanghai shares of PetroChina (SHA:601857, HKG:0857), Sinopec Oilfield Service (SHA:600871, HKG:1033) and CNOOC (SHA:600938, HKG:0883) all soared 10% at the market's close.
In corporate news, Zhejiang Tiantai Xianghe Industrial (SHA:603500) dipped 10% amid the issuance of convertible bonds worth up to 400 million yuan.
Henan Tong-Da Cable (SHE:002560) slumped 5.5% despite becoming the preliminary winning bidder for 151.3 million yuan worth of materials in China Southern Power Grid's bid.
Kangda New Materials (SHE:002669) dropped 7.2% following the appointment of Liu Bingjiang as vice chairman.
