HK bucks trend as tech jitters rattle regional markets
Blue-chip shares on the mainland closed lower on Friday and booked their steepest monthly loss since early 2016, as a global selloff in AI stocks weighed on sentiment. In Hong Kong, however, the benchmark Hang Seng Index ended 335 points, or 1.5 percent, higher for the day at 23,294 on turnover of HK$214.32 billion and was 0.9 percent up for the week. The tech index rose 10 points, or 0.3…
Despite a global tech downturn, Hong Kong's market bucked the trend, with the Hang Seng Index closing 1.5% higher on Friday. The tech index managed a modest 0.3% increase, though it remained near its two-year low. Valuations for certain stocks now treat the recent spending peak as a constant drag on earnings, while discounting the potential benefits of future cash flows or successful AI monetisation, according to Kenneth Fong, UBS's head of China internet research.
Financials and mainland property developers led the gains, while the China Enterprises Index added 106 points, or 1.4%, to close at 7,862. In Shanghai, the Shanghai Composite Index dropped 1.44%, while the CSI300 Index fell to near a one-year low. AI-related shares suffered amid renewed concerns about heavy AI spending following a sell-off in US tech stocks.
Memory chip giant SK Hynix and optical module producer Eoptolink Tech saw significant declines. Despite the broader market losses, consumer staples rose as investors sought less risky sectors. Meanwhile, Tokyo's Nikkei fell 2.12%, and Seoul's Kospi closed 3.48% lower, marking its biggest monthly loss in years.
Written by urgent.news from RTHK News - Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
