HK slips as mainland rises despite finance-sector hit
Mainland stocks edged up on Monday as technology stocks jumped, offsetting losses in banking and insurance shares following Beijing's capital-injection plan, while broader markets were muted as investors watched developments in Sino-US relations. In Hong Kong, the benchmark Hang Seng Index dropped 237 points, or 0.9 percent, to 25,413 on turnover of HK$209.67 billion. The tech index dropped 42…
China's stock markets continued to exhibit divergent trends despite Beijing's capital injection plan aimed at bolstering the banking and insurance sectors. Mainland stocks saw a slight increase, driven by gains in technology stocks that helped offset losses in banking and insurance shares. Meanwhile, Hong Kong's benchmark Hang Seng Index declined 0.9 percent, closing at 25,413. Tech stocks in Hong Kong also slipped by 0.9 percent, ending at 4,527. The China Enterprises Index fell 1.5 percent, reaching 8,429.
The Shanghai Composite Index held steady, increasing by two points, or 0.07 percent, to 3,932. The Shenzhen Component Index posted a more notable gain, rising 1.91 percent, or 257 points, to 13,774. Tech sectors were buoyed by the performance of chip-related firms, which mirrored the upward movements of their US counterparts.
In contrast, the insurance sector in Hong Kong saw a decline of 2.6 percent, while the banking sector experienced a 1.5 percent drop. The Finance Ministry's announcement of a combined US$54 billion capital injection into state-owned insurers and banks aimed to strengthen the financial system. Analysts noted that shifts in expectations regarding US interest rates would play a crucial role in determining the market's direction this week. Defensive large-cap stocks were expected to remain relatively resilient amidst this volatility.
In Tokyo, the Nikkei closed 1,378 points, or 2.12 percent, higher at 66,399, propelled by chip and AI-related stocks following gains in US semiconductor shares. The broader Topix index also rose by 22 points, or 0.55 percent, to 4,125.8. Seoul's Kospi ended the day up 308 points, or 4.61 percent, its highest closing level since July 23 and the largest single-day percentage increase since August 20.
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