HK stocks punch up as internet plays regain ground

Hong Kong stocks surged on Friday, closing the short holiday week near its lowest point in over a year, while mainland China's blue-chip index edged higher. The Hang Seng Index rose 1.8% to 24,211, marking a 1% weekly gain. Tech stocks climbed 3.1% to 4,197, hovering near a two-year low. Meanwhile, the Shanghai Composite Index rose one point to 3,813, up 0.2% for the week, after falling for nine consecutive weeks.

The Shenzhen Component Index added 20 points, or 0.17%, to 12,641, while the ChiNext Index increased six points, or 0.22%, to 3,043. The 5G Communication Index fell to a two-month low, down 6%. Tech-focused Star50 Index shed as much as four percent, closing near a five-month low. Despite the overall gains, market sentiment improved in the afternoon session, with some key blue-chip and small-cap ETFs seeing the highest turnover in nearly two months.

Companies like Zhongji Innolight, an optical transceiver maker, and CXMT, a memory chip giant, saw slight declines. China's stock benchmarks are near levels hit two years ago, when a stimulus from Beijing fueled share prices and heightened hopes for a bull market that is now slowing into a three-month downtrend. Coal index rose 1.4% and consumer staple shares gained 0.8%, as investors moved into defensive and traditional sectors to reduce risk.

In Tokyo, the Nikkei slipped 11 points, or 0.02%, to close at 69,030, as the benchmark ended the week with a 0.39% loss and investors questioned the prospects for the booming AI sector. The Topix index gained 13 points, or 0.33%, to 4,104 on Friday.