HONG KONG: China stocks edged lower on Monday, as weakness in AI and semiconductor stocks offset gains in defensive sectors, with investors remaining cautious ahead of key global central-bank decisions.
At the close, the Shanghai Composite index was down nearly 0.1 percent at 3,885.33 points, while the blue-chip CSI300 index was down 0.7 percent.
Tech shares led declines, with the start-up board ChiNext Composite index weaker by 1.1 percent and Shanghai’s tech-focused STAR50 index down 1.6 percent.
The CSI AI Index declined 1.9 percent and the CSI Semiconductor Index weakened 1.4 percent.
Defensive sectors inched higher, offsetting some losses, with the banking sector .gaining 0.8 percent.
Total turnover in Shanghai- and Shenzhen-listed A-shares today was 1.6 trillion yuan, extending the recent decline to the lowest levels since April.
“Looking ahead, with little change in the outlook for growth or stock-market liquidity while the global backdrop remains complex, investors are backing away from the risk-taking approach and are likely to demand clearer evidence of fundamental improvement,” analysts at Guotai Haitong Securities said in a note, adding that the markets are likely to stay range-bound going forward.
In Hong Kong, the benchmark Hang Seng Index added 0.5 percent and the Hang Seng Tech Index was little changed.
However, the Hang Seng AI Index dipped 3.3 percent, with shares of Z.AI sliding as much as 10.5 percent to the lowest level in five months after a discounted share placement. Peer Minimax dropped 6.5 percent by market close.
Around the region, Asian share markets slid in Asia on Monday as supply concerns caused oil prices to spike anew, while investors braced for possible interest rate hikes in both the United States and Japan this week.