SHANGHAI: China stocks edged down on Friday and ended the week lower, as a rally in AI shares lost momentum and concerns over higher US yields weighed on global equities.
China’s blue-chip CSI300 Index closed 0.1 percent lower and the Shanghai Composite Index edged down 0.3 percent. Hong Kong benchmark Hang Seng rose 1.7 percent.
For the week, the CSI300 Index ended 1.3 percent down, while the Hang Seng Index was up 0.3 percent.
Sentiment towards AI supply chain stocks cooled along with global peers and investors have shifted into some traditional sectors, according to market participants. The tech-focused STAR50 Index fell 2.1 percent, and was down 5.1 percent this week. The CSI Artificial Intelligence Index fell 1.6 percent.
Against broad declines, consumer staples shares rose 2.7 percent. Chinese liquor giant Kweichow Moutai shares rose 2.4 percent. The CSI Financial Index rose 0.8 percent.
Onshore A-share sentiment remained soft this week amid higher US yield concerns and weak domestic macro data, Morgan Stanley analysts said in a note. They lowered their China equity index targets to reflect a weaker growth outlook, tighter liquidity, less favourable flow dynamics and rising regulatory uncertainty.
Hong Kong shares rose after Federal Reserve Governor Christopher Waller said he is leaning toward keeping interest rates steady at the US central bank’s policy meeting this month if the next batch of inflation data shows price pressures are continuing to moderate.
Tech majors listed in Hong Kong rebounded from a two-month low, up 2.3 percent. Alibaba shares gained 2.4 percent.
Shares of Chinese smartphones-to-electric vehicle (EV) maker Xiaomi climbed 3.6 percent on a deal with German auto dealers.
Comments