Hong Kong stocks closed higher on Wednesday as investors diversified away from US assets amid rising tensions between the US and Iran.

The Hang Seng Index rose 0.6%, while the Hang Seng Tech Index rose 0.7%.

In terms of star stocks, Knowledge Atlas rose 19%; Haidilao up 9%; Alibaba up 6%; Bilibili up 5%; Kuaishou, Hua Hong Semi up 4%; Trip.com fell 6%; Meituan, Nio fell 3%.

Asian markets found support as geopolitical uncertainty in the Middle East reinforced demand for non-US equities, with some investors viewing Asia as a relative hedge and China’s markets as a key beneficiary of that diversification trend.

UBS Group said Chinese equities had become an increasingly important alternative for global investors seeking to reduce exposure to US stocks, which faced headwinds from elevated valuations and concerns over the Federal Reserve’s independence. “Chinese assets’ appeal will further increase this year because of a sharpened focus on diversified investments,” said Thomas Fang, head of China global markets at UBS.

Overnight in the US markets, the Dow Jones fell 0.8 per cent while the S&P 500 Index slid 0.2 per cent from its all-time high. Sentiment was partly weighed down by uncertainty over whether the top US court would move against tariffs that were announced in April. An unfavourable ruling on Wednesday could trigger a negative market reaction.