Chinese tech shares jump, help key indexes notch best month in eight

SHANGHAI: Chinese tech shares jumped on Thursday, helping major indexes notch their best month since August, while Hong Kong stocks fell after the Federal Reserve flagged rising inflation concerns.

At the close, the benchmark Shanghai Composite index was up 0.11 percent, while the blue-chip CSI300 Index lost 0.06 percent.

For the month, the SSEC jumped 5.66 percent and the CSI300 gained 8.03 percent. Both indexes recorded their biggest monthly gains since August.

Tech shares outperformed the broader market, with China’s tech-focused STAR 50 index jumping 5.19 percent, as artificial intelligence-related stocks advanced across Asia, buoyed by a raft of generally upbeat earnings reports.

Chinese chip designer Cambricon Technologies closed up 20 percent, hitting its daily upside limit, after it said its first-quarter net profit soared 185 percent year-on-year.

China’s factory activity expanded for a second straight month in April on firmer output and stockpiling activity, an official survey showed, suggesting that growth momentum held despite external shocks stemming from the Middle East war.

“Price pressures stayed firmly in expansionary territory, suggesting China’s reflation is continuing,” said Lynn Song, chief economist for Greater China at ING.

In Hong Kong, the benchmark Hang Seng Index lost 1.28 percent.

Fed Chair Jerome Powell closed out eight years as head of the US central bank with interest rates on hold, rising concerns about inflation, and an announcement that he would stay on as a Fed governor for now to defend the agency’s independence from Trump administration “battering.”

Developments around the Middle East remained key market focus. US President Donald Trump discussed how to mitigate the impact of a possible months-long US blockade of Iran’s ports with oil companies, a White House official said on Wednesday.

Mainland China’s financial markets will be closed for the Labor Day holiday from Friday, and trading will resume next Wednesday. Hong Kong markets will only be closed on Friday for the holiday.