Mainland stocks up as GDP data offsets tech woes

Mainland stocks opened higher on Monday, buoyed by bank shares, as optimistic third-quarter GDP data helped to offset weak sentiment surrounding certain AI supply chain companies. China's blue-chip CSI300 Index finished the day up by 0.1 percent, while the Shanghai Composite Index rose 14 points, or 0.39 percent, to reach 3,730. The Shenzhen Component saw a gain of almost 15 points, or 0.13 percent, bringing its total to 11,817. Conversely, the ChiNext Index declined by 26 points, or 0.94 percent, to 2,746.

China's economy grew 4.5 percent year-on-year in the third quarter, surpassing expectations and alleviating the need for Beijing to expedite support to meet its annual growth target. Retail sales for September also showed a surge. However, despite the positive GDP data surprise in September, concerns about China's economic imbalance persisted, according to ANZ analysts. They noted that fiscal support remains essential as policy constraints hinder monetary easing amid the challenges of a balance-sheet recession.

Domestic gains were primarily driven by traditional sectors, with banks up 1.5 percent and liquor shares increasing 0.8 percent. The tech-focused Star50 Index, however, saw a decline of 2.2 percent, as sentiment around the AI chip supply chain remained subdued. Robot maker Unitree's shares experienced a significant surge of 16 percent, following a record low hit the previous week.

Meanwhile, memory chipmaker CXMT suffered a 7.8 percent drop. The CSI300 Index experienced a sharp 3.4 percent decline last week, marking its worst weekly performance since mid-July.

In Tokyo, the benchmark Nikkei 225 Index dropped 407 points, or 0.62 percent, to close at 64,916. This decline was attributed to lingering concerns over valuation in the technology sector ahead of key results this week. The broader Topix managed to inch up by 0.04 percent to 4,067. In Seoul, the Kospi Index ended the day almost 100 points, or 1.76 percent, higher at 5,768, having recovered after chipmakers rebounded on dip buying following sharp losses the previous week.