Stocks down amid rising Middle East tensions

China stocks ended lower on Thursday, weakened by financial and transport stocks, as investors were rattled about possible US military action against Syria.

The blue-chip CSI300 index ended down 1.01 percent at 3,898.64 points, while the Shanghai Composite Index closed 0.87 percent lower at 3,180.16 points.

US President Donald Trump’s words about Syria on Wednesday raised the prospect of direct conflict over the country for the first time between Russia and the US, which are backing opposing sides in the seven-year-old civil war.

The conflict has also escalated a rivalry between oil-rich Saudi Arabia and Iran.

Main sectors fell across the board, with both banking and transport firms ending down 1.5 percent.

The largest percentage gainers on the main Shanghai Composite Index were Datang Telecom Technology Co, which gained 10.05 percent, followed by Sunny Loan Top Co, which jumped 10.04 percent, and Xinjiang Youhao Group Co, which rose 10.04 percent.

The largest percentage losers on the Shanghai index were Zhengzhou Coal Industry & Electric Power Co, which shed 8.43 percent, followed by Xinjiang Sayram Modern Agriculture Co, which lost 6.85 percent.

About 14.82 billion shares were traded on the Shanghai exchange, roughly 89.1 percent of the market’s 30-day moving average of 16.63 billion shares a day.