China, Hong Kong shares slip as Hormuz reopening hopes fade

Mainland China and Hong Kong stocks ended lower on Tuesday, as investors reassessed prospects for an end to the U.S.-Iran conflict that has pushed up global oil prices.

At the close, the benchmark Shanghai Composite index .SSEC eased 0.8%, snapping a five-session winning streak, while the blue-chip CSI300 index .CSI300 also slipped 0.8%.

The smaller Shenzhen index .SZSC was down 0.5%, the start-up board ChiNext Composite index .CNT inched up 0.3% and Shanghai's tech-focused STAR50 index .STAR50 lost 1.6%.

In Hong Kong, the benchmark Hang Seng index .HSI lost 1.1%, and the city's tech shares .HSTECH dropped 1.9%.

Hong Kong's material shares were the main dragger, with the Hang Seng material sub-index .HSCIM plunging 4.6%.

U.S. President Donald Trump on Monday responded to Iran's conditions for a peace deal with his own demands that Iran pay compensation for people killed in wars, attacks and protests, in a rhetorical escalation likely to complicate efforts to reopen the Strait of Hormuz.

Oil prices rose more than 2% on Tuesday to over one-week highs as hopes for a U.S.-Iran deal to end the war and reopen the Strait of Hormuz faded.

"Attacks on shipping and oil infrastructure in the Middle East over the weekend, together with Iran's renewed demand for concessions and rejection of direct negotiation with the U.S., added further uncertainty to the prospect of reopening the Strait of Hormuz," analysts at OCBC said in a note.

In China, non-ferrous metal stocks led the declines, with a sub-index tracking the sector .CSI000811 falling 4.7%.

Chinese robot maker Unitree 688836.SS said on Monday its $900 million Shanghai initial public offering was more than 8,000 times oversubscribed by retail investors, reflecting investor fever.