Geopolitical Tensions Ripple Through Asian Markets

China and Hong Kong stocks closed flat as the collapse of U.S.-Iran peace talks weighed on the market. Activity in Shanghai and Hong Kong showed mixed results amidst geopolitical tensions. Despite this, China's economy shows resilience, with upcoming data releases eagerly awaited by investors.

On Monday, China's stock markets experienced limited movement as the breakdown of U.S.-Iran peace talks weighed heavily on investor sentiment across the Asia-Pacific region.

The Shanghai Composite Index and CSI300 Index reversed early losses to close with marginal gains, while Hong Kong's Hang Seng declined. Broader Asian markets reflected similar caution amidst ongoing geopolitical instability.

Despite these challenges, China's domestic economy continued to show signs of recovery, with analysts noting optimism driven by positive factory-gate price movements and anticipated macroeconomic data releases in the coming days.

(With inputs from agencies.)