Tech fallout weighs on HK, mainland markets
Regional stocks ended mostly lower after a turbulent week dominated by revelations of extramarital affairs involving Nvidia cofounder Jensen Huang that culminated in his resignation, in a blow to the global AI boom he helped advance. In Hong Kong and the mainland, AI model stocks Z.AI and MiniMax Group fell sharply on worries of reduced access to advanced AI chips, while data centre suppliers…
Hong Kong and mainland markets experienced a downturn on Tuesday following revelations of extramarital affairs involving Nvidia cofounder Jensen Huang, which resulted in his resignation. AI model stocks Z.AI and MiniMax Group saw sharp declines due to concerns of reduced access to advanced AI chips. Data centre suppliers Zhongji Innolight and Eoptolink Technology, heavily reliant on US markets, also suffered losses.
Analyst Jon Zauderer of Citi suggested that competitors like AMD, Arista, and Broadcom might gain from Nvidia's setback. Hong Kong's Hang Seng Index closed 370 points, or 1.5 percent, lower at 23,637, while the tech index dropped 118 points, or three percent, to 3,813. The China Enterprises Index fell 119 points, or 1.5 percent, to 7,937.
In mainland China, the Shanghai Composite Index ended 21 points, or 0.59 percent, lower at 3,634, while the Shenzhen Component Index fell 229 points, or 2.05 percent, to 10,968. The ChiNext Index declined 83 points, or 3.32 percent, to 2,426. Tokyo's Nikkei ended 322 points, or 0.53 percent, higher at 61,142, marking its biggest weekly gain in five months.
The broader Topix increased four points, or 0.11 percent, to 3,941, logging a 6.3 percent weekly gain. Seoul's Kospi closed 52 points, or 0.98 percent, lower, but still posted a 4.56 percent weekly gain after a 12 percent drop the previous week.
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