HK stocks slip as region finds feet after Nvidia shock

Hong Kong's stocks experienced a slight downturn on Friday as the global market settled after a week marred by controversy surrounding Nvidia cofounder Jensen Huang, who resigned amid allegations of extramarital affairs. The Hang Seng Index opened 136 points, or 0.57 percent, lower at 23,871. The China Enterprises Index and tech index also declined by 0.57 percent and 0.35 percent, respectively.

Meanwhile, the Shanghai Composite Index started the day slightly higher, opening two points, or 0.08 percent, higher at 3,658. The Shenzhen Component Index and ChiNext Index both rose by 0.34 percent and 0.64 percent, respectively.

Nvidia's share price dropped by three percent during extended trading hours, while its customers, including South Korean company Naver, saw further declines, with Naver falling 2.75 percent. Jon Zauderer, head of specialist sales and TMT specialist at Citi, suggested that competitors like AMD, Arista, and Broadcom might benefit from the Nvidia fallout. He explained that investors would likely seek alternatives due to the uncertainty surrounding potential management changes.

In Tokyo, the Nikkei Index opened 404 points, or 0.66 percent, higher at 61,223 and reached a peak of 846 points before lunch, eventually gaining 846 points for the day. In Seoul, the Kospi Index began the day at 5,452, with a 2.05 percent increase, before slightly falling to 5,452. The market recovery followed last week's turmoil triggered by the Republicans' electoral defeat, which raised concerns about stricter regulation potentially hindering the AI infrastructure expansion that had propelled stocks to record highs this year.