SHANGHAI: China stocks closed lower on Tuesday as material and transport firms dropped following worries about surge in global cases of the novel coronavirus.

The blue-chip CSI300 index ended 1.2% lower at 4,635.76 and the Shanghai Composite Index 1.3% at 3,274.30. The CSI300 materials index and the CSI300 transport index dropped 2.9% and 3%, respectively.

New pandemic measures in the UK set off declines in airline, hotel and cruise companies in both European and US markets, spurring fears about further restrictions.

Concerns over Sino-US tensions also dented sentiment.

Beijing is unlikely to approve an “unfair” deal Oracle Corp and Walmart Inc said they have struck with ByteDance over the future of video-streaming app TikTok, state-backed newspaper Global Times said in an editorial.

Among sectors, only securities firms gained as investors cheered latest consolidation in the industry.

The Guolian-Sinolink merger could help consolidate financial resources and promote healthy development of the securities industry, analysts at Guosen Securities said in a report.

Consumer shares erased earlier gains though losses were narrower than other sectors.

China’s cabinet on Monday issued guidelines to boost new types of consumption, including online shopping and payments, in a bid to support the recovery of the economy.