HK stocks track regional plays down amid tech retreat

Asian markets experienced a brief respite on Thursday following an AI-driven rally the previous day, as oil prices remained within a narrow range. Hong Kong's Hang Seng Index opened lower by 248 points, or 0.96%, at 25,667, with losses widening to 467 points, or 1.8%, at one point in early trading. The China Enterprises Index fell 48 points, or 0.56%, to 8,555, while the tech index dropped 48 points, or 0.99%, to 4,884.

In mainland China, the Shanghai Composite Index opened 14 points, or 0.36%, lower at 3,864. The Shenzhen Component Index declined 162 points, or 1.15%, to 13,981, and the ChiNext Index slipped 63 points, or 1.78%, to 3,472. MSCI's Asia-Pacific index, excluding Japan, slipped 0.69%, driven by tech firms' declines. Tokyo's Nikkei Index fell 1,176 points, or 1.78%, to 65,123, before midday after opening down 404 points, or 0.61%, at 65,896 as heavyweight tech stocks mirrored Wall Street's losses.

Seoul's Kospi Index opened 119 points, or 1.81%, lower at 6,478, with losses accelerating to 322 points, or 4.89%, at one point before lunch. Iran and Oman reportedly agreed on a deal to end five months of war between Iran and the United States, potentially granting Tehran control over ships entering the Gulf through the Strait of Hormuz, a significant concession.

Oil prices hovered around the US$70-a-barrel range. Analyst Madison Cartwright of Commonwealth Bank of Australia suggested a deal to reopen the Strait of Hormuz could be reached by early September, though he remained doubtful about an imminent deal. Investors are now closely watching US labor market data ahead of Friday's nonfarm payrolls report, with ADP figures on Wednesday showing private employers added 44,000 workers last month, below expectations.