China, Hong Kong stocks mixed as investors digest tech selloff
- China's blue-chip CSI300 Index edged up 0.1% by the lunch break, while the Shanghai Composite Index was down 0.25%
HONG KONG: China and Hong Kong stocks were largely flat in a volatile session on Wednesday, while investors were seen buying tech shares after the previous day’s global selloff.
China’s blue-chip CSI300 Index edged up 0.1% by the lunch break, while the Shanghai Composite Index was down 0.25%. Hong Kong benchmark Hang Seng was largely flat.
On Tuesday, technology and semiconductor stocks sold off, with South Korea’s Kospi plunging nearly 10%.
The big falls in tech stocks without any major catalyst are “another illustration of rising volatility in these stocks, a result of what increasingly looks like frothy earnings expectations and/or valuations,” said James Reilly, senior markets economist at Capital Economics, in a note.
By sector, semiconductors and healthcare rebounded the most in the morning session, with CSI semiconductor index and Hong Kong listed biotech firms advancing 3% each.
Real estate and software stocks underperformed, losing 3.5% and 2.5% respectively. Some analysts remain upbeat about the AI cycle.
We see recent market volatility as a cooling-down rather than a turning point, said Huaan Securities analysts in a note.
This correction presents a good opportunity for investors to add AI industry chain positions, they added.
Meanwhile, the yuan slid to one-month low on Wednesday, pressured by a stronger greenback as investors positioned for potential Federal Reserve rate hikes.
The smaller Shenzhen index was down 0.15%, the start-up board ChiNext Composite index was higher by 0.42% and Shanghai’s tech-focused STAR50 index was up 2.48%.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.40% while Japan’s Nikkei index was down 1.17%. ‑Reuters
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